How the tariffs between Canada and the US started: a timeline for online sellers

Short answer: for most of the last 30 years, goods moved between Canada and the US with little or no duty. Since 2025 that has changed several times, often with little notice. Here is how it happened, in order, and what each step meant for a small online store.

Before 2025: a mostly duty free border

Since 1994, first under NAFTA and since July 1, 2020 under CUSMA (USMCA in the US), goods that qualify as made in North America have crossed between the three countries without duty. Small parcels had their own shortcut: the US let in low value shipments without duty or formal paperwork, up to US$800 per person per day.

For a small store that meant one thing: border costs into the US were close to zero, and into Canada they were mostly sales tax.

2018 and 2019: the first metals tariffs

In 2018 the US put tariffs on steel and aluminum from most countries, including Canada, under Section 232 of its trade law, a rule that lets the President act on imports for national security. Canada answered with surtaxes on US goods. Both sides lifted them for each other in May 2019.

Early 2025: tariffs return, and Canada answers

In early 2025 the US announced tariffs on goods from Canada, Mexico and China. On Canadian goods they started on March 4, 2025, and goods that qualified under CUSMA were soon spared. Canada answered the same day with surtaxes on a long list of US goods.

The same spring, the US brought back its metals tariffs for every country, then raised them, and added tariffs on cars and car parts. These Section 232 tariffs apply whatever the trade agreement says, because they are about the product, not the partner.

August 29, 2025: no more duty free parcels into the US

This is the change most online stores felt. The US stopped letting low value commercial parcels in without duty, for every country. Since then, a T shirt sent from Canada to a US customer can owe duty from the first dollar, plus any tariff on the country where it was made, plus a clearance fee from the carrier.

February 2026: a court ruling

In February 2026 the US Supreme Court ruled on the tariffs the US had imposed under its emergency powers law (IEEPA). They have not been collected since February 24, 2026. The metals, car and other Section 232 tariffs were not part of that ruling and stayed.

2026: new country tariffs, and Canada's changes

On July 24, 2026 the US started a new set of country tariffs, listed in note 52 of chapter 99 of its tariff schedule: 10% or 12.5% on almost every product from about 60 places. For a few partners the rule tops their normal duty up to that level instead of adding to it. Goods of Canada and Mexico that qualify under CUSMA are spared.

In Canada, the 100% surtax on electric vehicles made in China, part of a 2024 order that also put 25% on some Chinese steel and aluminum, was repealed on March 1, 2026. Other surtaxes on US goods have come and gone with remission orders and end dates.

From September 29, 2026 the US also bans some Canadian alcohol, dairy and motor vehicle products under three proclamations.

What it means for your store

• Where a product was made matters more than ever. Most of the new tariffs follow the country of origin, not the country the parcel ships from.
• Into the US, every parcel goes through customs now. Price it in, or charge it at checkout.
• Rules change with weeks of notice, sometimes less. A price that worked in spring can lose money in autumn.

Othermile reads the official rules every morning, so each estimate uses the rules in force that day. The tariff tracker shows how the border cost of common products has moved, with every change marked, and Border news lists each change as it happens.

Check your own numbers

• One parcel: the free border fee checker.
• Your store's last 90 days: the free border cost audit.
• Every order, before it ships: Othermile checks each one against your limits and holds the costly ones for your OK.

These are estimates from the official rules, not customs advice.

This guide explains public rules in plain language for general information. It is not customs, tax or legal advice; the exact tariff code, your paperwork and the carrier decide the final amount.