Exporting to Canada: What You Need to Know

Editor’s Note (April 2026): This article has been updated to reflect recent tariff developments, new Canadian customs requirements including CARM, and current trade policy considerations for U.S. exporters.

Canada and the United States share one of the most integrated trading relationships in the world. For many U.S. businesses, Canada isn’t just a nearby market—it’s often the first and largest international customer.

The two countries’ economies have grown alongside each other for decades, creating deeply connected supply chains across manufacturing, agriculture, energy, technology, and consumer goods. As a result, exporting to Canada is typically more straightforward than entering many other international markets. Regulatory systems are similar, logistics networks are highly developed, and Canadian businesses and consumers are familiar with U.S. products.

In this article, I’ll look at the history of U.S. trade with Canada; how NAFTA and now the USMCA has altered trade with Canada; the process of exporting to Canada, including documentation and compliance requirements; and the benefits and considerations for U.S. companies looking to break into the Canadian market.

Facts and Figures on Trade and Exporting to Canada

Numbers reflect just how significant this relationship is. According to the latest data from the U.S. Census Bureau, total U.S. goods trade with Canada reached about $720 billion in 2025, with U.S. exports totaling $336.58 billion and imports from Canada reaching $382.96 billion. As of early 2026, Mexico has overtaken Canada as the largest export destination for U.S. goods, purchasing more American products than any other country, but by just a hair. Canada remains an excellent potential business market.

Tariffs and Trade Policy Updates (2025–2026)

As we reference in our webinar, How to Export from the U.S. to Canada, exporters need to be aware of recent tariff changes that may affect their shipments to Canada. In early 2025, the U.S. government announced new tariffs on imports from Canada. Beginning March 2025, the U.S. imposed a 25% tariff on many Canadian goods and a 10% tariff on Canadian energy products, including oil and electricity. These tariffs were introduced as part of a broader trade policy shift affecting several U.S. trading partners.

Canada responded with retaliatory tariffs on billions of dollars’ worth of U.S. exports. These measures affected a range of products, including metals, manufactured goods, consumer products, and some agricultural items. For exporters, these changes highlight the importance of understanding how tariffs are applied to cross-border shipments. Tariffs are typically assessed based on the Harmonized System classification of a product and the country of origin.

However, many goods traded between the United States and Canada still qualify for preferential tariff treatment under the United States–Mexico–Canada Agreement (USMCA). Products that meet the agreement’s rules of origin may be eligible for reduced or zero tariffs. Exporters should verify that their products qualify and ensure they provide the proper USMCA documentation when required.

Because tariff policies can change quickly, companies exporting to Canada should:

• Confirm the correct HS classification for their products
• Determine whether their goods qualify under USMCA rules of origin
• Check the current tariff schedule before shipping
• Monitor updates to U.S. and Canadian trade policies
  
  

The quickest way to check what import controls apply to your products is with Shipping Solutions Import Controls Software (free trial).

Taking these steps can help exporters avoid unexpected duties, delays at the border, and compliance issues.

The USMCA and Exporting to Canada

In 2020, NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA). As a result, companies that utilized the benefits of NAFTA when exporting to Canada had to review their products to make sure they qualified under the terms of USMCA. While many products didn’t have significant changes, certain key industries in Canada, like agriculture, did have significant changes.

The USMCA modernized and balanced U.S. trade relations with Canada (and Mexico) and reduced incentives to outsource by providing labor and environmental protections, innovative rules of origin, and revised investment provisions. The Agreement also brought labor and environment obligations into the core text and made them fully enforceable.

Here are some of the highlights of this agreement:

• Under USMCA, Canada and Mexico agreed to strong enforcement provisions against counterfeiting and piracy, ensuring protection of trade secrets and ex officio authority for law enforcement officials to stop suspected in-transit counterfeit goods.
• USMCA contains the strongest disciplines on digital trade of any international trade agreement, including rules to ensure that data can be transferred cross-border and minimizing limits on where data can be stored and processed.
• USMCA increased access for U.S. dairy and poultry farmers to the Canadian market and eliminated its discriminatory grading of U.S. wheat.
• USMCA committed to ensuring that British Columbia eliminates discriminatory treatment of U.S.-origin wine in grocery stores and includes new non-discrimination and transparency commitments regarding the sale and distribution of alcoholic beverages.
• USMCA increases the de minimis rule for exports to Canada (up to $150 CAD) and Mexico ($117 USD) to allow goods up to that value to enter duty free. This was intended to boost small e-commerce orders to those countries. The U.S. de minimis amount remained unchanged at $800, although the agreement allows the U.S. to match the de minimis amounts of the other two countries if it desires.
• To stimulate more North American auto production through updated automotive rules of origin, USMCA increased regional value content for passenger vehicles and light trucks from 62.5% to 75%, phased over three years.

USMCA also designated importers as the party to make the claim to the appropriate customs authority for preferential duty rates under the agreement based on certification that the goods qualify from the producer, exporter or importer. (NAFTA had designated the exporter as the party to make the claim.)

While there is no longer an official certificate of origin form, whichever party is certifying that the goods meet the rules of origin must provide, at minimum, certain data elements as outlined in the agreement to support the claim. That information can be provided on the invoice or on a separate attached document—a certification of origin. That document may be a hard copy or digital.

Exporting to Canada: The Challenges

Canada remains one of the easiest international markets for U.S. exporters, but companies must still navigate customs documentation, tax requirements and evolving trade policies. New barriers, including CARM requirements, GST registration, and provincial compliance, also may make exporting more difficult.

According to the ITA, other challenges include:

• Notably, many exporters forget that Canada is, indeed, a different country that requires specific export procedures. As a result, they fail to follow export compliance regulations.
• U.S. exporters must understand differing provincial regulations, conduct due diligence on market potential and sales channels, comprehend labeling and packaging requirements and certification standards and customs procedures, and, in general, must educate themselves on unique industry matters relevant to selling their goods or services in Canada.
• Increasing competition in several sectors such as cosmetics, vitamins, electronics and home furnishings translates into a need for competitive pricing, provocative and imaginative marketing, and deep discounts for agents and distributors. Exporters should be prepared for Canada Customs documentation, bilingual labeling and packaging requirements, Canadian federal and provincial sales tax accounting, and, in some cases, should be aware of International Traffic in Arms Regulations (ITAR).
• Bidding for contracts can also be a challenge for U.S. exporters because of the requirements and security clearances. Bidders must be registered in Canada to bid and must fulfill all Canadian requirements to be awarded contracts (mandatory requirements are non-negotiable).

Rules and Regulations in Canada

As previously mentioned, deciphering Canadian rules and regulations for exporting can be frustrating in the least and, at worst, cause issues that force an exporter to stop trade with the country completely.

There are ways to combat these issues when exporting to Canada:

• Work closely with your local U.S. Commercial Service office. They will link you to offices in Canada that will help you establish your presence in Canada and assist you through difficulties you may face.
• Additionally, the U.S. Department of Commerce's Advocacy Center can help you with the early stages of your project.
• Find partners who have experience working with Canada. Your freight forwarder and banker should have documented experience working with the country.

Exporting to Canada: The Opportunities

The potential rewards of exporting to Canada likely far outweigh any challenges exporters may face. Exporters should identify and cultivate opportunities while building a strategy to minimize the risks.

The positive impacts of the USMCA mean that Canada may be a better option for exporting than other countries. The USMCA improves market access for U.S. companies in several important ways, specifically through intellectual property rights, digital trade, labor obligations, environmental obligations and automotive manufacturing.

Canada’s most promising sectors include the following:

• Aerospace and defense
• Agriculture
• Automotive
• Medical devices
• Renewable energy, including hydro, wind, solar, biomass, geothermal and marine energy
• Information technology

Export Assistance

The best thing about exploring the opportunities to export to Canada is knowing you don’t need to go it alone. You can rely on assistance from your in-country allies, including the U.S. Commercial Service office, trade missions, and chambers of commerce.

U.S. Commercial Service Offices

One of the first places to consider are your local and in-country U.S. Commercial Service offices. The Commercial Service in-country offices offer U.S. exporters business partners in Canada—boots on the ground in the country—and include representation by an agent, distributors or partners who can provide essential local knowledge and contacts that can be critical for your success. You can learn more about in-country offices in our article, Tapping into the U.S. Commercial Service's In-Country Offices.

District Export Councils (DECs)

DECs across the country can help exporters by supporting trade and services that strengthen individual companies, stimulate U.S. economic growth and create jobs. DEC members also serve as mentors to new exporters and can provide advice to smaller companies.

Trade Missions

Sponsored by state and local trade offices as well as commercial service offices, trade missions are a great way to get introduced to and network with contacts. Check into them.

International Trade Administration (ITA)

The ITA is an excellent resource to help you combat trade problems. ITA staff are resident experts in advocating for U.S. businesses of all sizes. They customize their services to help solve your trade dilemmas as efficiently as possible. The ITA makes it easy to report a problem, allowing you to submit your report online.

Chambers of Commerce

Chambers of commerce may be a resource when exporting to Canada. You can learn more about various chambers and how they can help smooth the way for your export activities in our article, The Chamber of Commerce Role in Exporting.

Export Document Requirements for Canada

When exporting to Canada, documentation and procedures are still critical. According to the International Trade Administration, the most important document a U.S. exporter needs when exporting to Canada is the Canada Customs Invoice or a standard commercial invoice that includes all the required information.

Other documents you need to export to Canada will vary depending on your products, but they include:

• Bill of lading
• USMCA certification of origin
• Packing list
• Sales contract
• Proforma invoice
• Customs declaration
• Insurance policy

Export Compliance Issues When Exporting to Canada

It’s important to understand the regulations covering exports to Canada. You must be concerned with complying with export regulations no matter where you ship, but, fortunately, understanding regulations is easier to do than, say, if you were exporting to China.

This doesn’t mean you can take export compliance lightly. You need to understand what is required of you and what you risk if you don’t do your job in complying with those regulations.

Product Classification for Export Controls

The first step in ensuring export compliance is determining who has jurisdiction over your goods: the U.S. Department of Commerce under the Export Administration Regulations (EAR) or the State Department's Directorate of Defense Trade Controls (DDTC).

If your goods fall under the jurisdiction of the Commerce Department, which most products do, you must determine if your export requires authorization from the Bureau of Industry and Security (BIS, part of the Commerce Department). To do so you need to answer the following questions:

• What is the Export Control Classification Number (ECCN) of the item?
• Where is it going?
• Who is the end user?
• What is the end use?

There are three ways to classify your products for export controls: You can self-classify your products, submit a SNAP-R request for a ruling, or rely on the product vendor to provide the information. If you’re self-classifying, Shipping Solutions Product Classification Software makes the process easier than manually searching through codes and regulations. You can give it a try for free here.

By classifying your product correctly, you’ll be protecting yourself from potential fines, penalties and even jail time.

Export License Determination

Next, companies must use the ECCN codes and reasons for control described above to determine whether or not there are any restrictions for exporting their products to specific countries. Once they know why their products are controlled, exporters should refer to the Commerce Country Chart in the EAR to determine if a license is required.

Although a relatively small percentage of all U.S. exports and re-exports require a BIS license, virtually all exports and many re-exports to embargoed destinations and countries designated as supporting terrorist activities require a license. Countries fitting that bill are Cuba, Iran and North Korea. Part 746 of the EAR describes embargoed destinations and refers to certain additional controls imposed by the Office of Foreign Assets Control (OFAC) of the Treasury Department.

The Shipping Solutions Professional export documentation and compliance software includes an Export Compliance Module that uses the ECCN code for your product(s) and the destination country to tell you if an export license is required. If indicated, you must apply to BIS for an export license through the online Simplified Network Application Process Redesign (SNAP-R) before you can export your products.

There are export license exceptions, like low-value or temporary exports, that allow you to export or re-export, under stated conditions, items subject to the Export Administration Regulations (EAR) that would otherwise require a license. These license exceptions cover items that fall under the jurisdiction of the Department of Commerce, not items controlled by the State Department or some other agency.

Deemed Exports

Surprise! You may be an exporter without even knowing it! Deemed exports, or the disclosure of information or services rather than an actual product, is an important issue to pay attention to when exporting. A deemed export occurs when technology or source code (except encryption and object source code, which is separately addressed in the EAR under 734.2(b)(9)), is released to a foreign national within the United States.

Sharing technology, reviewing blueprints, conducting tours of facilities, and other information disclosures are considered potential exports under the deemed export rule and should be handled accordingly. You can learn how to apply this principle here.

Restricted Party Screenings

Restricted party lists (also called denied party lists) are lists of organizations, companies or individuals that various U.S. agencies—and other foreign governments—have identified as parties that one can’t do business with.

There are several reasons why a person or company may be added to a restricted party list. For example, they may be a terrorist organization or affiliated with such an organization, they may have a history of corrupt business practices, or they may otherwise pose a threat to national security.

Restricted party screening (or denied party screening) refers to the process in which a company checks a potential customer or business partner against one or more of the restricted party lists to ensure they are not doing business with a restricted party.

The primary restricted party lists in the United States are published by the Department of Commerce, Department of State, and Department of Treasury. However, several other agencies produce lists as well. These agencies recommend that companies perform restricted party screening periodically and repeatedly throughout the movement of goods in the supply chain.

When exporting to Canada, it’s imperative you check every single restricted party list every time you export.

• Fines for export violations can reach up to $1 million per violation in criminal cases (Bureau of Industry and Security).
• Administrative cases can result in a penalty amounting to $250,000 or twice the value of the transaction, whichever is greater.
• Criminal violators may be sentenced to prison for up to 20 years, and administrative penalties may include denial of export privileges.

Export Documentation and Compliance Software

If you’re considering exporting to Canada, Shipping Solutions export documentation software can help you quickly create the necessary documents and stay compliant with export regulations. Register for a free demo of the Shipping Solutions software to see how it can revolutionize the way you’re currently creating your export paperwork.

Exporting to Canada: Key Takeaways

For many companies, exporting to Canada from the U.S. is the first step into international trade. The close economic relationship between the two countries, combined with efficient transportation networks and the benefits of the USMCA trade agreement, makes Canada a natural market for American businesses looking to grow beyond domestic borders.

By understanding Canadian import requirements, preparing accurate export documentation, and staying informed about evolving trade regulations, exporters can move goods across the border more smoothly and position their businesses to take advantage of one of the world’s strongest and most stable trading partnerships.

Shipping to the EU, UK, Canada or other global markets involves more than simply moving products from point A to point B. Exporters must navigate complex regulations, documentation requirements and tax systems—often with little margin for error.

GLOBAL GATEWAY by Shipping Solutions brings everything together in one place. This all-in-one export management service combines expert compliance support, integrated export documentation and discounted international shipping in a single streamlined solution.

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You don’t need to master every detail of international trade to succeed globally. You just need the right partner.

Schedule a free, no-obligation consultation to learn how we can support your exports.

This is one in a series of articles exploring exporting to specific countries across the globe—we previously featured ASEAN countries, Australia, Belgium, Brazil, China, the EU, France, Germany, India, Israel, Japan, Mexico, the Netherlands, Russia, Singapore, South Korea, Taiwan and the United Kingdom.

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