Canada to Drop Some Counter Tariffs on U.S. Imports Starting September 1

The new tariff rollback targets CUSMA-compliant goods. Import taxes on U.S. autos, steel, and aluminum remain in place.

Canada has announced that, as of September 1, 2025, it will drop some of its counter tariffs on U.S. imports.

This applies to all goods that are compliant with the rules of the Canada–United States–Mexico Agreement (CUSMA).

The decision will restore tariff-free trade for a wide range of goods and bring the majority of cross-border commerce back under the trade agreement.

It comes less than a year before Canada and the U.S. are set to conduct a review of the CUSMA/USMCA terms.

Although an assessment of the agreement by all parties is scheduled for July 2026, Canada will begin its formal review by the end of September or early October.

How the counter tariffs unfolded

In early 2025, the U.S. used the International Emergency Economic Powers Act (IEEPA) to impose new tariffs on Canadian goods.

These included a 25% tariff on Canadian imports, except for energy products, which were subject to a 10% duty. 

In response, effective March 4, 2025, Canada introduced 25% counter tariffs on approximately $30 billion in U.S. imports through its United States Surtax Order (2025-1).

This applied to a wide range of goods, including appliances, clothing, motorcycles, cosmetics, food products, and beverages.

On March 13, Canada expanded its action by introducing another 25% surtax on almost $29.8 billion worth of U.S. imports under the United States Surtax Order (Steel and Aluminum 2025).

Then, on August 1, 2025, the U.S. raised its import tariff on Canada to 35% for goods that do not meet CUSMA rules of origin.  

Next steps for Canadian importers

If you import goods from the U.S., we recommend the following next steps:

• Determine whether your goods remain subject to the 25% duty after September 1
• Ensure you have valid documentation proving that your goods are CUSMA-compliant (if applicable)
• Consider revising your pricing strategies to reflect the rolled-back or continued counter tariffs
• Consult your customs broker to confirm proper classification, ensure your documentation meets CBSA requirements, and avoid costly delays or penalties 

How Cole International can help

At Cole International, we provide customs and compliance consulting and customs brokerage services to help you navigate changing regulations and streamline the importing of goods into Canada.

If you import goods from the U.S., please reach out to one of our trade professionals to determine whether this change will impact your business and how we can help.