In an Executive Order (EO) published on July 31, 2025, President Trump announced he was increasing the tariff rate on goods from Canada from 25% to 35%.

Goods that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA) will still be exempt from these duties.

The EO also states that articles of Canada that do not qualify under USMCA and are determined to be transshipped to evade duties will be subject to an additional tariff of 40%. The Executive Order and its accompanying Fact Sheet did not provide details on how U.S. Customs and Border Protection (CBP) would determine if a shipment was transshipped to evade duties.

This increase of the tariff rate went into effect on August 1, 2025.

The “Amendment to Duties to Address the Flow of Illicit Drugs Across our Northern Border” EO can be read here:
https://www.whitehouse.gov/presidential-actions/2025/07/amendment-to-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border-9350/

The “Amendment to Duties to Address the Flow of Illicit Drugs Across our Northern Border” Fact Sheet can be found here:
https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-amends-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border/