For those of you who don’t live under a rock, you’ve heard the news: Donald Trump has slapped new tariffs on Canadian exports, putting pressure on businesses that ship goods south of the border. And in response, Canada has hit back with retaliatory tariffs on U.S. imports.
For Canadian businesses, the tariff battle means two big things:
- If you export to the U.S., your goods just got more expensive for American buyers, thanks to higher duties. That could mean tougher negotiations, squeezed margins, or a need to rethink pricing strategies.
- If you import from the U.S., brace yourself—Canada has hit back with retaliatory tariffs, driving up costs on select American goods. Your supply chain might feel the pinch.
With CBSA’s Assessment and Revenue Management (CARM) system now handling all tariff and duty payments, businesses—whether importing, exporting, or caught somewhere in between—need to know how these tariffs are calculated, where they show up on your Statement of Account (SOA), and how to keep costs under control.
Let’s break it down.
How These Tariffs Are Calculated
Step 1: HS Code Classification
Step 3: Trade Agreements & Exemptions
How to Pay These Tariffs Through CARM
Where to Find Tariff Charges on CARM
Using Release Prior to Payment?
How Canadian Businesses Can Stay Ahead of Tariff Changes
- Keep Up with the Ever-Changing Tariff Lists
- Rethink Your Trade Strategy
- Adjust Your Pricing Before Tariffs Eat Your Profits
- Get Expert Financial Help
How These Tariffs Are Calculated
Whether you’re dealing with Trump’s tariffs on exports or Canada’s retaliatory tariffs on imports, the math behind them follows the same playbook.
Here’s how CBSA decides what you owe:
Step 1: HS Code Classification
Every product you import or export is assigned a Harmonized System (HS) code—a 10-digit number that tells CBSA what your goods are and what duty rate applies.
Think of it as the customs equivalent of a price tag. If your product falls under a category that’s now tariffed, the extra duties get stacked on top of the standard rate.
Step 2: Valuation
Tariffs aren’t just slapped on at random—they’re based on your product’s total value. That means CBSA considers:
- The price you paid for the goods.
- Any commissions or royalties that apply.
- Freight and insurance costs (depending on your shipping terms).
This is why it’s important to keep your invoices crystal clear—misreporting the value of your goods can land you in hot water with CBSA.
Step 3: Trade Agreements & Exemptions
Normally, businesses trading under CUSMA enjoy reduced or zero-duty rates. But here’s the catch: Trump’s new tariffs often override this agreement.
If you want to see whether your goods still qualify for preferential treatment, you can review Canada’s trade agreement resources here.
The bottom line? Your tariff rate depends on what you’re shipping, how much it’s worth, and whether a trade deal still applies. And with both countries changing the rules quickly, staying updated is now a full-time job.
How to Pay These Tariffs Through CARM
Like it or not, CARM is now the one-stop shop for all duty and tariff payments.
That means whether you’re dealing with Trump’s tariffs on exports or Canada’s retaliatory tariffs on imports, everything funnels through your Statement of Account (SOA) in the CARM Client Portal.
Where to Find Tariff Charges on CARM
Wondering where these extra costs are hiding?
Your SOA is where CBSA keeps track of everything you owe—duties, tariffs, GST, and more. If your imported goods got hit with retaliatory tariffs, or if you need to account for higher costs on U.S.-bound exports, you’ll see the charges listed under the “Duties” column in your monthly statement.
How to Pay
Paying tariffs isn’t complicated, but it’s definitely something you don’t want to forget about.
Here’s how businesses can settle up through CARM:
- Online banking – Add CBSA as a payee and send payments directly.
- Pre-authorized debit – Set it and forget it with automated payments.
- Electronic Data Interchange – Best for high-volume importers who like automation.
Using Release Prior to Payment?
If your business is enrolled in Release Prior to Payment (RPP), tariffs won’t be due at the time of import. Instead, they’ll roll into your monthly billing cycle, giving you some breathing room. If you’re not on RPP yet, you might want to be—register on the CARM Client Portal.
Here’s the takeaway: if you’re importing or exporting with the U.S., expect to see new tariff charges on your SOA—and make sure you’re set up to pay them through CARM before the due date sneaks up on you.
How Canadian Businesses Can Stay Ahead of Tariff Changes
With tariffs shifting faster than a weather forecast, businesses need to stay sharp. Whether you’re exporting to the U.S. or importing from it, now is the time to assess, adapt, and act.
1. Keep Up with the Ever-Changing Tariff Lists
One week your products are in the clear, the next they’re slapped with a hefty duty. Tariff lists are constantly changing, so staying informed is non-negotiable.
Global Affairs Canada regularly updates its list of retaliatory tariffs and affected U.S. imports, so bookmark this page and check in often.
2. Rethink Your Trade Strategy
If you export to the U.S., your American buyers are feeling the price pinch, so it might be time to renegotiate pricing or find ways to absorb costs without tanking your margins. If you import from the U.S., start looking at alternative suppliers—whether that means diversifying into domestic or non-U.S. markets.
Every business will have a different playbook, but sticking with the status quo could be costly.
3. Adjust Your Pricing Before Tariffs Eat Your Profits
With extra duties stacking up, businesses need to recalculate margins and decide whether to absorb the costs or pass them on. If you wait too long to adjust, you could be watching your profits shrink while your competitors get ahead.
Take a hard look at pricing now before tariffs start biting into your bottom line.
4. Get Expert Financial Help
Trade wars aren’t DIY projects.
Tariffs, duty recovery programs, tax implications—there’s a lot to navigate. A customs broker, accountant, or trade consultant can help you find cost-saving opportunities, ensure compliance, and avoid nasty surprises on your Statement of Account.
If ever there was a time to bring in the experts, this is it.
How AIS Solutions Can Help
Trump’s tariffs and Canada’s countermeasures aren’t going away overnight, and the businesses that stay informed, adjust quickly, and get the right advice will come out ahead. But you don’t have to figure it all out alone.
AIS Solutions specializes in helping Canadian businesses navigate financial challenges like these. Whether you need accounting support, cash flow planning, or strategic financial advice, our team is here to help you stay ahead of shifting trade policies. Get in touch with us today to protect your bottom line.
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