Tariff Update: Latest Changes to US, Canada and Mexico Import Duties
October 13, 2026 | ATN Trade & Finance
The North American tariff landscape has changed substantially since the start of 2026. Here is where things stand as of this week — including a key date importers on both sides of the US-Canada border need to have on their calendars.
US–Canada: Escalating Tariffs on Both Sides
The sharpest changes involve Canada. The US imposed 50% Section 338 tariffs on approximately $20 billion in Canadian goods — covering alcohol, dairy, and motor vehicles — effective August 22. These tariffs override USMCA; Canadian origin certification does not provide an exemption. Most other Canadian goods face a 10% Section 301 forced-labor tariff on top of normal duties.
Canada responded with retaliatory tariffs of 15%, 25%, or 50% on more than 700 US products, effective September 8, plus a 50% counter-tariff on US steel and aluminum. A separate US import ban on roughly $1 billion in Canadian goods — alcohol, dairy, and motorcycles — took effect September 29.
Looking ahead: 50% tariffs on Canadian autos, auto parts, and steel are still scheduled to take effect January 1, 2027, with no reprieve announced.
US–Mexico: Calmer, But Section 232 Still Bites
Mexico's tariff situation is more stable. The earlier IEEPA 25% tariff on Mexican goods ended February 24, 2026, and Mexico's own retaliatory measures remain paused. Most Mexican goods now face only the 10% Section 301 forced-labor tariff, and USMCA-qualifying goods are exempt from that levy. However, Section 232 steel, aluminum, and copper tariffs — at up to 50% — still apply even to USMCA-origin goods. Mexico has also imposed its own 5%–50% tariffs on 1,463 tariff lines from non-FTA countries (including China), effective January 1, 2026 — relevant for manufacturers using Chinese inputs in Mexican supply chains.
Global Measures Still in Force
Several sector-wide US tariffs remain: 25% on autos and auto parts, 50% on semi-finished copper, 100% on branded pharmaceuticals (20% for companies with a US onshoring plan; generics and biosimilars are exempt), and 25% on advanced semiconductors. De minimis — the $800 duty-free threshold — has been suspended since August 29, 2025, so all commercial imports incur duty regardless of value.
CBP Fee Update
As of October 1, the Merchandise Processing Fee is 0.3464% of value, with a $34.58 minimum and $670.86 maximum per formal entry. USMCA-originating goods remain exempt from MPF — making up-to-date origin certification worth real money.
What this means for importers and exporters: The Canada situation is the most urgent: the January 2027 auto and steel tariff escalation is 11 weeks away with no announced resolution, and origin documentation accuracy now determines whether a shipment faces 0% or 50%. For Mexico-routed supply chains, confirm that Chinese-origin inputs do not trigger Mexico's non-FTA duties and that USMCA certification is current to preserve the Section 301 exemption.
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