Tariff Update: Latest Changes to US, Canada and Mexico Import Duties
October 14, 2026 | ATN Trade & Finance
Two tariff changes took effect today, and the broader North American duty landscape has shifted materially over the past several weeks. Here is a current state of play.
Today: Section 232 Metals Rule Changes (October 14)
Effective today, Proclamation 11032 updates how Section 232 tariffs apply to steel, aluminum, and copper from USMCA partners. Under the new rule, Canada and Mexico pay the Section 232 rate — up to 50% — only on the non-U.S. content of each shipment, rather than on the full declared value. A 15% floor applies on the whole product, meaning duty cannot be zero even with substantial U.S. inputs. Shippers that document U.S.-made parts or U.S.-melted/smelted metals in their supply chain stand to reduce their duty base materially starting with entries today.
Also effective today: Mexico moved auto assembly kits (SKD/CKD, tariff line 9803.00.01) from 10% to duty-free for five years, applying to authorized automakers regardless of the country of origin of the components.
Canada: The Section 338 Framework
The most significant recent development for Canadian imports is the Section 338 tariff regime, which imposes 50% duties on approximately $20 billion of Canadian goods — applied on top of Section 232 tariffs and regardless of USMCA qualification. The most recent scope update (September 15) added paper and paperboard, hides and leather, ATVs, motorboats, furniture, mattresses, lighting, and cheese, while removing whiskies, Portland cement, salt, toilet tissue, and fishing rod parts. A separate set of import bans on certain alcoholic beverages, dairy, and motor vehicle-related products took effect September 29.
Canada retaliated: Canadian counter-tariffs on roughly $20 billion of U.S. exports at tiers of 50%, 25%, and 15% took effect September 8.
The Section 301 Baseline
Across both Canada and Mexico, a 10% Section 301 forced-labor tariff (effective July 24) applies to 60 economies — with USMCA-qualifying goods specifically exempted. Maintaining valid certifications of origin and supporting documentation is the primary mitigation tool for North American supply chains.
USMCA Status
The agreement remains in force through at least 2036. However, the U.S. did not confirm a new 16-year term at the July joint review, and the three parties agreed to hold annual reviews rather than a one-time renewal. USTR has opened public comment for the 2027 review, with written submissions due January 12, 2027.
What this means for importers and exporters: The October 14 Section 232 update rewards shippers who can document U.S. input content — it is worth auditing existing supply chains for potential duty savings on metal-containing products from Mexico and Canada. The Section 338 regime continues to make Canadian goods in affected categories significantly more expensive than pre-2026 baselines. USMCA certification remains the single most effective duty mitigation tool available across both borders, and the January 12 comment deadline on the 2027 review is the next structural inflection point.
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