The US tariff on Canadian goods, honestly explained

Every brand wants a single number here and there is not one. Understanding why is what lets you find your own rate instead of relying on someone else’s summary.

Three things determine your rate

Classification. The general rate attaches to the HS subheading, not to the country. Different products face different base rates.

CUSMA qualification. If the good meets the rule of origin and preferential treatment is claimed and supported, the applicable rate can be zero where the general rate is not.

Additional measures. Separate trade actions can apply on top of the general rate to specified headings, sometimes with exclusions, sometimes with their own treatment of originating goods.

Why summaries mislead

A headline figure describes one measure applied to one group of headings. Applied to your catalogue it will be wrong for most SKUs in both directions — too high for qualifying goods, too low for goods in a heading with an additional measure.

Repricing a whole catalogue off a headline number is a reliable way to lose money, either by overcharging US customers on goods that enter free or by underpricing goods that are now carrying an additional rate.

Getting your real answer

Classify every SKU. Determine CUSMA qualification per SKU against the rule of origin for its heading. Then check each heading against the measures currently in force, including exclusions.

The output is a table: SKU, heading, CUSMA status, applicable rate. That table is the only form in which the question "what is our tariff rate" has a usable answer.

Keeping the answer current

The table is perishable. Measures change, exclusions are added and withdrawn, and effective dates shift. A table built three months ago may be wrong for several headings today.

Which is the argument for monitoring rather than auditing: build the mapping once, then watch it, so the day something moves you receive a list of your affected SKUs rather than a news story.