TARIFF TRACKER
Raises IEEPA duties on non-USMCA Canadian goods from 25 percent to 35 percent
This order raises the additional duty on covered Canadian goods from 25 percent to 35 percent starting August 1, 2025. USMCA duty-free goods remain carved out, and transshipment evasion can trigger a 40 percent duty plus penalties.
Updated October 12, 2026
STATUS
Struck down
·
EFFECTIVE
·
IEEPA
RATE
35% (evasion 40%)
35% additional ad valorem; 40% for transshipment evasion
COUNTRIES
Canada
PRODUCT FAMILIES
All goods
COVERED GOODS
All articles that were subject to the 25 percent additional duty under Executive Order 14193, as amended, are instead subject to 35 percent. The Federal Register publishes the HTSUS annex as images; see the source.
EXCLUSIONS
The order does not alter the prior USMCA duty-free carve-out in Executive Order 14231. It also says it does not alter section 2(b) of Executive Order 14193 or sections 2(a) and 2(b) of Executive Order 14231.
USMCA
Additional duties do not apply to Canadian products that qualify for duty-free entry under USMCA. Canadian articles that do not qualify as originating under USMCA and are found to be transshipped to evade duties face 40 percent in lieu of the section 2 duty.
WHAT TO DO (OUR GUIDANCE, NOT LEGAL ADVICE)
Check Canadian-origin SKUs against the prior Executive Order 14193 duty scope and confirm whether they qualify for duty-free USMCA treatment. For covered non-USMCA Canadian goods entered on or after August 1, 2025, update landed costs to reflect the 35 percent additional duty and review supply chains for transshipment risk.
SOURCES
Executive Order 14325, 90 FR 37957 (August 6, 2025)
QUOTES FROM THE SOURCE
Rate: "the additional ad valorem rate of duty shall increase from 25 percent to 35 percent." (source)
Rate: "shall be subject to (i) an additional ad valorem rate of duty of 40 percent, in lieu of the additional ad valorem rate of duty applicable under section 2" (source)
Effective date: "effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 1, 2025." (source)
Signed: "Executive Order 14325 of July 31, 2025" (source)
Covered goods: "All articles that are subject to the additional ad valorem rate of duty of 25 percent under Executive Order 14193, as amended, shall instead be subject to an additional ad valorem rate of duty of 35 percent." (source)
Countries: "certain articles that are products of Canada" (source)
USMCA: "the additional ad valorem rates of duties under Executive Order 14193 do not apply to articles that are products of Canada that qualify for duty-free entry under the Agreement between the United States of America, United Mexican States, and Canada (USMCA)" (source)
Exclusions: "Nothing in this order shall be construed to alter or otherwise affect section 2(b) of Executive Order 14193 or section 2(a) or section 2(b) of Executive Order 14231." (source)
Status: "All articles that are subject to the additional ad valorem rate of duty of 25 percent under Executive Order 14193, as amended, shall instead be subject" (source)
Checked against source
on
Canada rate 25% to 35% from Aug 1, 2025, 40% for transshipment, USMCA goods excluded read in source.
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