July 15, 2025

🚨 U.S. 35% Tariff on Canadian Exports Begins August 2025

What It Means for Your Business?

Starting August 1, 2025, the United States will impose a 35% import tariff on selected goods coming from Canada. This new measure could directly affect Canadian exporters, as well as international sellers routing shipments through Canada to the U.S.

🧭 Why Is the U.S. Imposing This Tariff?

The U.S. has announced this tariff in response to two concerns:

• Canada’s failure to curb fentanyl trafficking

• Trade behavior that violates U.S. expectations

As a result, goods that do not qualify under USMCA (United States–Mexico–Canada Agreement) will face a 35% duty, regardless of product type.

🔍 Key Insight: This is not limited to one industry. Any product that fails to meet USMCA origin rules is subject to the tariff.

📦 Which Products are Affected?

The determining factor is origin compliance with USMCA. Products must meet specific manufacturing or content standards to avoid extra tariffs.

✅ Products That May Be Exempt:

• Goods made or substantially modified in Canada, the U.S., or Mexico

• Items with North American materials, like vehicles, steel, machinery, and certain agricultural goods

• Shipments accompanied by a valid USMCA certificate of origin

If your products fall into these categories, you may avoid the 35% tariff.

📘 Case Study: Is Your Product at Risk?

Product: USB Charging Cable
Origin: Taiwan
Exported From: Canada
Price: $5 CAD
HS Code: 8544.42.20.00

Risk:

• ✅ Item qualifies under Section 321 (less than $800 USD per shipment)

• ❌ Not a USMCA-origin product

• ❌ Type of product often inspected due to value and category

⚠️ Conclusion: While the cable might pass under Section 321, frequent shipments or bulk volumes increase the risk of customs review and a 35% penalty. 

✅ What eCommerce Sellers and Individuals Should Do?

• To reduce risk and stay compliant, sellers should follow these guidelines:

  • Use clear HS codes and product descriptions

  • Attach accurate invoices and origin documentation

  • Keep each shipment under $800 USD

  • Ship with Section 321-compliant couriers like FedEx, DHL, or UPS

  • Avoid repeated shipments to the same address in short timeframes

  • Purchase discounted shipping labels via Dino-Express for added compliance support

📌 Final Takeaway: Prepare Now for the August 2025 U.S. Tariff Shift

Once the 35% U.S. tariff takes effect, any product that does not qualify as USMCA-origin—even a $5 USB cable—can be taxed at the border if routed through Canada.

Cross-border sellers, SMEs, and eCommerce businesses must evaluate:

• Product sourcing

• Routing strategy

• Customs risk management

Need Dino-Express Help Navigating the New Rules?

Dino-Express provides tailored support for:

• Logistics optimization

• Customs compliance

• Direct-to-U.S. exports without Canadian detours

📩 Contact us today to stay compliant and protect your profit margins.
📩 WhatsApp/Email/Website customer service available for inquiries!