Beyond the Tariff Rate: What Canadian Importers Need to Know as U.S.–Canada Trade Rules Shift
Canadian importers will face higher tariffs, customs restrictions, and compliance concerns. If you attended UPS’s trade webinar on September 10, you learned what businesses need to know. Tariffs are becoming a minor part of a much larger challenge for Canadian small and medium-sized firms engaged in cross-border commerce. Changes in customs processes, product classifications, rules of origin, importer responsibilities, and landed charges are making it harder for businesses to move goods between Canada and the United States.
UPS hosted a webinar titled Beyond the Tariff Rate: What US and Canadian Importers Need to Do Next on September 10, 2026, at 11:00 AM EST. The event covered recent Canada-U.S. trade developments and offered practical advice for firms considering costs, compliance duties, and cross-border operations.
Canada-U.S. Trade Is Entering Another Critical Period
The United States remains Canada’s top merchandise export market. In 2025, the United States received 71.7% of Canada’s merchandise exports, down from 75.9% in 2024. Canada’s product exports to the United States fell by 5.8 percent in 2025. Small enterprises are particularly vulnerable to changes south of the border.
According to Innovation, Science, and Economic Development Canada, SMEs accounted for 73.3% of Canadian firms exporting goods in 2024 and 37.9% of the total value of Canadian goods exports. In 2024, the United States received 79.4 percent of small firms’ export value.
Because of this concentration, changes in tariffs, customs processes, or importer obligations can significantly affect Canadian companies’ margins, pricing, and supply chain considerations.
Why Section 338 Matters to Canadian Businesses
Section 338 of the United States Tariff Act of 1930 is a key topic covered in the webinar. Section 338 authorizes the President of the United States to apply extra charges of up to 50% in response to what the administration deems discriminatory or unequal treatment of US commerce by another country. In July 2026, the US administration used Section 338 to impose additional 50% tariffs on certain Canadian products, including dairy, alcoholic beverages, and motor vehicles. Following a temporary hiatus, the extra obligations took effect on August 22.
Canada subsequently announced countermeasures. Effective September 8, 2026, Canada imposed tariffs of 15%, 25%, and 50% on $27.6 billion in U.S. imports, focusing on steel, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. These measures make it even more vital for SMEs to understand precise tariff classification, place of origin, and total landed cost.
Executive Order 14411 Raises the Compliance Bar
Importers must watch more than just tariff rates. On June 3, 2026, the United States released Executive Order 14411, Strengthening Customs Enforcement, which advocates for increased customs enforcement and greater accountability for registered importers. The order focuses on importer identification, duty collection, forced labour restrictions, country of origin, origin marking, intellectual property, and product safety.
The order also instructs the US Department of Homeland Security to update regulations, guidance, and procedures related to importer eligibility within 180 days. For enterprises shipping into the United States, this guidance emphasizes the significance of precise documentation and internal trade compliance procedures.
Companies may need to investigate beyond the simple question, “What tariff applies?” Instead, they should ask:
- Is the product classified using the correct Harmonized System code?
- Does the declared country of origin have the necessary documentation to support it?
- Who is the importer of record?
- Are the customs values calculated correctly?
- Is the shipment eligible for applicable preferential treatment or tariff relief?
- What is the true landed cost after taking into account tariffs, levies, taxes, and other expenses?
Landed Cost Visibility Becomes a Business Strategy
For SMEs with thin margins, an unexpected customs fee can transform a profitable shipment into an unprofitable one. This is why landed cost visibility is evolving beyond a logistics function. It is progressively influencing price strategy, supplier selection, procurement decisions, and customer experience. Canadian businesses should model various tariff situations before goods reach the border, rather than assessing their risk after customs clearance.
The Canadian government also maintains tariff remission methods in specific cases. Businesses that can’t get necessary inputs locally or fairly from non-US suppliers may be eligible to request exceptional tariff relief, depending on their eligibility and the items involved.
What the UPS Webinar Covered
UPS-organised September 10th session focused on five key areas: Section 338 and its two-way influence on Canada-United States commerce; Executive Order 14411 and changing importer expectations; current customs and trade rules; compliance risk management techniques; and options for classification reviews, customs support, and increased landed cost visibility.
The webinar featured UPS experts in trade policy, customs, public affairs, and cross-border commerce, including Catherine Mellor, Vice President of Global Public Affairs; Jessica Rosen, Senior Director of UPS Trade Advisory Services; Carolyn Kim, Vice President of Public Affairs for UPS Canada; Brian Huh, Product Manager; and Penny Moulton, Director of Trade Management Services and Trade Compliance. Together, these perspectives are anticipated to link policy changes with practical actions. Their insights are expected to connect legislative advances with the practical considerations firms must make when shipping items across borders.
What Canadian SMEs Should Do Now
Canadian firms do not need to wait for another tariff notification before assessing their exposure. Importers and exporters can start by analyzing product categories, confirming origin documents, reviewing supplier and customer contracts, modelling landed costs under various tariff scenarios, and identifying areas where their supply chains still rely heavily on a single marketplace.
For organizations without dedicated internal customs or foreign trade teams, specialist advice can also help uncover gaps before they become costly compliance issues. Preparedness is becoming increasingly crucial as Canada’s and the United States’ trade policies accelerate. Businesses that understand their risk, have accurate data, and can swiftly forecast the financial impact of a regulation change will be better prepared to respond.
This webinar was for firms seeking to better understand tariff risk, customs compliance, and the practical ramifications of recent Canada-United States trade developments.
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Disclaimer: This article is based on publicly available information and is intended only for informational purposes. CanadianSME Small Business Magazine does not endorse or guarantee any products or services mentioned. Readers are advised to conduct their research and due diligence before making business decisions.
A Client Manager at CanadianSME, Maheen adds a practical, hands-on perspective to the podcast. Her experience in conducting interviews, coordinating events, and collaborating with business experts provides valuable insights into the day-to-day realities of running a small business. Her involvement in the magazine’s marketing initiatives also brings a valuable understanding of audience engagement and content strategy.
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