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The tariff landscape for Canada–US freight has changed more in the past 18 months than in the previous two decades. Since February 2025, tariffs have been imposed, escalated, struck down by the Supreme Court, replaced under different legal authority, and partially rolled back - while Canada has levied and then lifted its own counter-tariffs. Through all of it, freight has continued to move across the border, but the cost, complexity, and compliance requirements of moving it have fundamentally shifted.
Now, the CUSMA joint review begins July 1, 2026, with the potential to reshape the entire trade agreement. For Canadian businesses shipping freight to or from the United States, understanding what’s currently in effect, what’s coming, and what to do about it is no longer optional.
This guide covers the current state of US–Canada tariffs as of June 2026, how they’re affecting cross-border freight rates, what the CUSMA review means for shippers, and the specific steps you should take now.
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Timeline: How the US–Canada Tariff Situation Got Here
February 1, 2025: President Trump announces 25% tariffs on most Canadian imports and 10% on Canadian energy products under the International Emergency Economic Powers Act (IEEPA). The move covers the broadest range of Canadian goods targeted by a US tariff action in modern history.
February–March 2025: Canada responds with retaliatory counter-tariffs, initially covering $30 billion in US goods, then escalating to $155 billion. Provincial governments add their own measures, including bans on US alcohol sales.
August 29, 2025: The US suspends the de minimis exemption for all imports. Shipments under $800 in value, previously exempt from duties, are now subject to full tariff and customs processing. This primarily affects e-commerce and low-value cross-border shipments but changes the compliance landscape for all cross-border commerce.
September 2025: Canada lifts most of its retaliatory counter-tariffs on CUSMA-compliant US goods. Counter-tariffs on US-origin steel, aluminum, and automobiles remain in effect.
October 2025: Canada–US trade negotiations break down. A five-month hiatus in formal talks begins.
February 24, 2026: The US Supreme Court strikes down the IEEPA-based tariffs, ruling them unconstitutional. The same day, the Trump administration replaces them with a 10% global tariff under Section 122 of the Trade Act of 1974. Critically, CUSMA-compliant goods are exempt from this new 10% tariff. Section 232 tariffs on steel, aluminum, lumber, and automobiles remain in effect under separate legal authority and are NOT affected by the IEEPA ruling.
March 2026: Canada–US trade negotiations resume. The US Trade Representative submits the 2026 National Trade Estimate to Congress.
April 8, 2026: Canada finalizes the Motor Vehicles Surtax Remission Order, extending counter-tariff relief on certain US-manufactured vehicles for an additional year.
April 20, 2026: US Customs and Border Protection (CBP) launches the CAPE platform, allowing importers who paid IEEPA tariffs in 2025 to begin submitting refund claims.
July 1, 2026: The first mandatory CUSMA joint review begins under Article 34.7.
What Tariffs Are Currently in Effect (June 2026)?
The tariff landscape is layered. Different tariff regimes apply under different legal authorities, and CUSMA compliance determines whether certain tariffs apply at all. Here is what’s currently in effect for goods crossing the Canada–US border.
Section 122 Global Tariff (10%)
A 10% tariff applies to all goods entering the United States that do not qualify under a free trade agreement. This replaced the invalidated IEEPA tariffs on February 24, 2026. The key detail for Canadian shippers: goods that meet CUSMA rules of origin are exempt from this tariff. If your product qualifies under CUSMA, you pay 0% under this particular tariff regime. If it does not qualify, you pay 10%.
This makes CUSMA compliance documentation more important than it has ever been. The difference between 0% and 10% on a truckload of goods is substantial, and customs officials are scrutinizing rules-of-origin claims more carefully than before the trade war.
Section 232 Tariffs (Steel, Aluminum, Lumber, Autos)
Section 232 tariffs operate under separate legal authority and are NOT affected by CUSMA compliance. These tariffs apply regardless of whether the goods meet rules of origin. As of June 2026, the rates are 25% on steel and aluminum imports, 10% on timber and lumber (with increases scheduled for later in 2026), 25% on kitchen cabinets, vanities, and upholstered furniture, and 25% on certain automotive parts.
For Canadian shippers in manufacturing, construction, and automotive supply chains, Section 232 tariffs are the most impactful and the least negotiable. They represent a structural cost increase that cannot be eliminated through compliance or documentation. The only mitigation is budgeting accurately and optimizing freight costs on the lanes where these goods move.
De Minimis Suspension
Since August 29, 2025, the US has suspended the de minimis exemption that previously allowed goods valued under $800 to enter duty-free. All US imports, regardless of value, are now subject to applicable duties and customs processing. This primarily affects e-commerce, small parcels, and low-value commercial shipments. For freight-scale shippers moving palletized goods, the direct impact is limited, but the broader effect is an increase in customs processing volume and potential border delays.
Canadian Counter-Tariffs
Canada lifted most of its retaliatory tariffs on CUSMA-compliant US goods by September 2025, but counter-tariffs on US-origin steel, aluminum, and automobiles remain in effect. The federal government has committed approximately $1.2 billion to support Canada’s lumber industry and additional funding for affected manufacturers. Provincial alcohol bans were mostly reversed through early 2026.
How Tariffs Are Affecting Cross-Border Freight Rates
Tariff policy creates freight cost pressure through multiple channels, not just the tariff rate itself.
Direct rate increases: According to C.H. Robinson’s April 2026 freight market update, truckload costs are projected 16–17% higher year over year. Cross-border lanes are particularly affected because tariff uncertainty makes carriers price risk into their rates.
Capacity volatility: During peak tariff uncertainty in early 2025, Ontario-based brokers reported that cross-border load rates doubled as shippers rushed to move inventory before tariffs took effect. An estimated 75% of Canadian carriers are involved in cross-border freight. When those carriers cannot predict whether they will find a load back to Canada from within the US, they price round-trip uncertainty into the outbound rate.
Landed cost inflation: The tariff rate is only one component. Customs brokerage fees, compliance documentation costs, border delay detention, carrier risk surcharges, and increased administrative time all contribute to higher total landed costs. What appears to be a 10% tariff increase can translate to a 15–20% increase in total landed cost once all components are factored in.
IEEPA refund opportunity: Shippers who paid the 35% IEEPA tariffs during 2025 may be eligible for refunds now that those tariffs have been struck down. CBP launched the CAPE platform on April 20, 2026 for importers to submit refund claims. Contact your customs broker to determine eligibility and process.
See how LTL and FTL rates are trending for Canada freight.
The CUSMA Review: What Happens on July 1, 2026?
On July 1, 2026, Canada, the United States, and Mexico begin the first mandatory joint review of the Canada–United States–Mexico Agreement (CUSMA, also known as USMCA in the US and T-MEC in Mexico). This review is built into the agreement under Article 34.7 and is the most consequential trade policy event for Canadian cross-border shippers in 2026.
The review is not a full renegotiation, but it can trigger one. Under the agreement’s structure, the three countries must decide whether to extend CUSMA for another 16 years (to 2042) or enter a holding pattern of annual reviews until the agreement’s built-in expiry in 2036. Separately, Article 34.6 allows any country to withdraw entirely on six months’ notice.
The Bank of Canada’s January 2026 Monetary Policy Report outlined three scenarios. In the first, CUSMA is extended with limited changes, providing long-term certainty for cross-border supply chains. In the second, renegotiation leads to tighter rules of origin or reduced tariff preferences, increasing effective trade costs. In the third, one or more parties decline to extend, triggering annual reviews that add uncertainty to every planning cycle.
Canada’s negotiating position, as stated by Minister Dominic LeBlanc, is preservation of the agreement. Chief trade negotiator Janice Charette has framed July 1 as a checkpoint rather than a cliff. But the backdrop is challenging: Prime Minister Carney has declared CUSMA effectively broken by US tariff actions, US–Mexico discussions on automotive rules of origin are proceeding without Canadian involvement, and bilateral irritants remain unresolved.
What this means for freight: if CUSMA rules of origin are tightened, more goods lose their duty-free status under the Section 122 tariff, increasing costs. If the agreement enters annual reviews instead of being extended, long-term supply chain planning becomes harder because the trade framework is year-to-year instead of decade-to-decade. If withdrawal happens, every product crossing the border faces tariff exposure that did not previously exist.
For the operational guide to cross-border freight logistics, read Shipping Freight to Canada from the U.S.
What Canadian Shippers Should Do Now
The tariff landscape is volatile but not unmanageable. These are the specific steps that protect your freight budget and supply chain through the CUSMA review and beyond.
Audit your CUSMA compliance. Determine which of your products qualify under CUSMA rules of origin. Products that qualify are exempt from the 10% Section 122 tariff. Products that do not qualify face the full rate. If you have not done this audit, the time is before July, not after.
Verify HS codes with your customs broker. Tariff classification errors are the most common cause of unexpected duty charges, border delays, and re-inspection. When tariff rates are high, the cost of a misclassification is proportionally higher. Get this right before the shipment moves.
Review Section 232 exposure specifically. If your freight includes steel, aluminum, lumber, automotive parts, or finished furniture, these tariffs apply regardless of CUSMA status. They are not going away. Build them into your cost models.
Check IEEPA refund eligibility. If you imported goods into the US during 2025 and paid IEEPA tariffs at 25–35%, those tariffs were subsequently invalidated by the Supreme Court. CBP’s CAPE platform launched April 20, 2026 for refund claims. Talk to your customs broker about filing.
Build rate flexibility into freight budgets. Cross-border freight rates are more volatile than domestic. Contract lanes with rate caps, re-opener clauses, or quarterly renegotiation windows provide protection against tariff-driven spikes. Spot-market-only strategies expose you to the worst pricing during peak volatility.
Work with a freight broker who understands cross-border. Customs coordination, documentation accuracy, CUSMA compliance verification, and carrier selection for tariff-affected lanes require expertise that a self-serve platform does not provide. A broker who manages cross-border freight daily catches errors before they become expensive problems.
Monitor the CUSMA review outcome. The July 1 review will shape your 2027 supply chain planning. Follow CFIB (cfib-fcei.ca), Export Development Canada (EDC), and the Government of Canada’s trade updates for real-time developments.
Get a Cross-Border Freight Shipping Quote.
Freightzy Helps You Ship Across the Border with Confidence
The tariff landscape is complicated. Cross-border freight does not have to be. Freightzy’s team manages the quoting, customs coordination, documentation, and carrier selection so your freight moves across the Canada–US border accurately, compliantly, and at the best available rate. One broker. One point of contact. Every cross-border lane.
Freight Class Calculator - Instantly calculate the impact of tariff changes on shipping expenses, helping
businesses act fast and make data-driven choices.
Advisory Expertise - Logistics professionals at Freightzy offer hands-on support, helping companies rethink supply strategies and manage costs with the newest addition of Freightzy Extend.
Tailored Logistics Solutions - Freightzy creates customized approaches to ensure operations remain efficient and compliant, even as tariffs shift. Find out which freight services we offer.
There are several proactive steps businesses can take to soften the impact of rising shipping expenses:
Better Packaging Techniques - By optimizing packaging to increase shipment density, companies can cut down on freight costs. Try out Freightzy cubic capacity calculator to see how different packages affect the shipment.
Diversified Sourcing - Exploring trade partnerships in countries with lower tariffs is becoming more common as businesses look to stabilize supply chains.
Digital Optimization - We, at Freightzy, offer the tech tools necessary for real-time cost tracking and smarter logistics decisions.
FAQ: About US–Canada Tariffs and Cross-Border Freight
What tariffs apply to cross-border freight between Canada and the US in 2026?
As of June 2026, three tariff regimes apply to cross-border freight. A 10% global tariff under Section 122 applies to all non-CUSMA-compliant goods (CUSMA-compliant goods are exempt). Section 232 tariffs of 25% apply to steel and aluminum regardless of CUSMA compliance. Additional Section 232 tariffs apply to lumber, furniture, and automotive parts at varying rates. Canada maintains counter-tariffs on US steel, aluminum, and automobiles. The situation is layered and product-specific.
Are CUSMA-compliant goods exempt from tariffs?
CUSMA-compliant goods are exempt from the 10% Section 122 global tariff. However, they are NOT exempt from Section 232 tariffs on steel, aluminum, lumber, and automobiles, which operate under separate legal authority. CUSMA compliance eliminates one layer of tariff exposure but not all of it.
How are tariffs affecting cross-border freight rates?
Cross-border truckload costs are projected 16–17% higher year over year as of April 2026 (C.H. Robinson). Beyond direct rate increases, tariffs add customs brokerage fees, compliance documentation costs, border delay detention, and carrier risk pricing. Total landed cost increases often exceed the tariff rate itself by 5–10 percentage points.
What is the CUSMA review and when does it happen?
The CUSMA joint review begins July 1, 2026 under Article 34.7. It is the first mandatory review since the agreement took effect in 2020. The three countries must decide whether to extend the agreement for 16 years (to 2042), enter annual reviews until the 2036 expiry, or begin renegotiation. The outcome will significantly affect cross-border freight costs and supply chain planning for years to come.
Can I get a refund for IEEPA tariffs I paid in 2025?
Potentially yes. The US Supreme Court invalidated IEEPA-based tariffs in February 2026, and CBP launched the CAPE platform on April 20, 2026 for importers to submit refund claims. Eligibility depends on the specific tariffs paid, the goods involved, and your importer-of-record status. Contact your customs broker to assess your eligibility and begin the filing process.
How does Freightzy help with tariff-affected cross-border freight?
Freightzy is a Canadian freight broker based in Guelph, Ontario, less than an hour from three of the busiest Canada–US border crossings. We coordinate customs brokerage, documentation validation, CUSMA-compliant carrier selection, and rate optimization for cross-border LTL and FTL shipments. When tariff changes affect your lanes, your freight specialist adjusts routing and carrier selection proactively.
What should Canadian shippers do to prepare for the CUSMA review?
Audit your products for CUSMA rules of origin compliance. Verify HS codes with your customs broker. Review Section 232 exposure for steel, aluminum, and lumber. Check IEEPA refund eligibility via CBP’s CAPE platform. Build rate flexibility into freight contracts. Monitor CFIB, EDC, and Government of Canada trade updates for review developments.
