🏗️ USMCA Compliance Surges for Canadian Exports
August 26, 2025
In June, 81 percent of Canadian goods entering the U.S. qualified for tariff-free treatment under the USMCA—up significantly from 56 percent the previous month, according to Reuters. That spike means a vast majority of exports—especially high-value sectors—are now shielded from recent U.S. tariff hikes, which impose penalties of up to 35 percent on non‑compliant Canadian goods.
USMCA exemptions now cover almost all energy exports and a significant portion of other goods—leaving just a small share exposed to punitive tariffs. This rapid surge in compliance underscores how quickly Canadian supply chains are adapting under pressure. While the large-scale and energy sectors have reached near-full compliance, smaller firms and non-energy exporters continue to lag—hindered by paperwork burdens and supply chain limitations.
This surge in USMCA-protected exports is more than a statistic—it’s a strategic lifeline for Canadian businesses navigating a tide of U.S. tariff escalation. By swiftly aligning with CUSMA certification, exporters have turned a potential exposure into a competitive edge. However, the remaining compliance gaps—especially among small and non-energy exporters—need urgent attention. Streamlining certification and providing targeted support will be vital if Canada wants to ensure full, equitable access to its most important trading partner.
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