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Tariff Update: Latest Changes to US, Canada and Mexico Import Duties

Tariff Update: Latest Changes to US, Canada and Mexico Import Duties

ATN Breaking News |

Tariff Update: Latest Changes to US, Canada and Mexico Import Duties

October 7, 2026 | ATN Trade & Finance

North American trade policy is in one of its most turbulent periods in decades. The US–Canada trade relationship has escalated into a full-blown tariff war, the 2026 USMCA review has upended the framework that governed $1.6 trillion in trilateral trade, and a wave of new Section 301 tariffs has hit dozens of countries simultaneously. Here is what importers and exporters need to know right now.

US–Canada: A Trade War in Full Swing

The biggest shift in the North American trade landscape is the collapse of duty-free treatment between the US and Canada for goods that had long been USMCA-compliant.

On August 22, 2026, sweeping new Section 338 tariffs of 50% ad valorem took effect on a broad range of Canadian goods — the first US tariffs in this dispute to directly target items that would previously have entered the US duty-free under the USMCA. By September 15, the scope expanded to cover cheeses, metal products, paper products, and furniture.

The escalation continued: on September 29, the US imposed outright import prohibitions on select Canadian goods including certain dairy products, alcohol, and motorcycles over 800cc.

Looking ahead, a 50% tariff on Canadian autos, trucks, automotive parts, and steel was announced August 24 and is scheduled to take effect January 1, 2027 — a significant threat to the deeply integrated auto supply chains that cross the Canada–US border daily.

Canada's Retaliation

Ottawa has not stood down. On August 25, Canada announced dollar-for-dollar counter-tariffs on $27.6 billion of US imports, which took effect September 8, 2026. The targeted sectors include steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, and copper wire. Prime Minister Mark Carney has made clear Canada will not accept US demands without reciprocal concessions: "Washington does not get to dictate the terms."

Canada has also moved to diversify trade relationships. In January 2026, Ottawa cut its tariff on Chinese electric vehicles from 100% to 6.1%, with a 49,000-vehicle annual quota, drawing criticism from Washington and adding another flashpoint to negotiations.

The 2026 USMCA Review: Free Trade to "Managed Integration"

July 1, 2026 marked the first mandatory review of the USMCA — and the US declined to renew the agreement for the standard 16-year term, moving it instead to annual reviews. USTR Jamieson Greer stated bluntly: "A rubberstamp of the Agreement is not in the national interest."

The US is pushing for: tighter rules of origin across autos and manufactured goods; alignment from Canada and Mexico on tariffs, export controls, and investment screening; and mechanisms to block China from using either country as a duty-free backdoor into the US market.

Mexico has taken a measured stance. President Sheinbaum has rejected any deal that harms Mexican national interests, but has made some concessions — including imposing 10–35% tariffs on steel from Asian countries without bilateral trade agreements and agreeing to review the IMMEX temporary-import program. Autos represent approximately 40% of US imports from Mexico and remain the most contested issue.

The net effect: USMCA is being renegotiated from the ground up, with investment uncertainty now baked into every cross-border supply chain decision across the continent.

Broader Tariff Landscape

Beyond North America, several major tariff changes are now in effect:

  • 60 trading partners: Section 301 tariffs of 10–12.5% took effect July 23, 2026. Japan, South Korea, Switzerland, Taiwan, and the EU are "topped up" to those thresholds.
  • Brazil: A 25% Section 301 tariff took effect July 22, stacking on top of existing MFN duty rates.
  • Russia and Iran: The Sanctioning Russia and Iran Act, signed September 18, mandates tariffs of up to 500% on Russian goods and up to 100% on major Russian energy buyers.
  • IEEPA tariffs: The Supreme Court invalidated IEEPA-based tariffs in February 2026. CBP stopped collecting them February 24. Section 232 and Section 301 tariffs remain in full force.
  • Drones: Unmanned aircraft systems now face 25–100% tariffs as of September 3, 2026.

What this means for importers and exporters: The rules that governed North American trade for the past six years have fundamentally changed. USMCA-compliant status no longer guarantees duty-free access to the US market for Canadian goods. Supply chains built around the assumption of seamless cross-border flow — particularly in automotive, dairy, steel, paper, and electronics — face new landed cost calculations. Businesses sourcing from or exporting to Canada and Mexico should immediately review their customs classification, rules-of-origin documentation, and tariff engineering strategies with a licensed customs broker. The January 2027 auto tariff deadline is the next major watch date.

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