35% U.S. Tariffs, An Exemption Exists

[Barrie, ON — August 5, 2025] As of August 1, 2025, the United States has increased tariffs on a wide range of Canadian goods to 35%, up from the 25% rate imposed in March. These tariffs apply to any Canadian exports that are not certified under the United States-Mexico-Canada Agreement (USMCA).

This is a major economic shift and one that will hit hard in regions like Barrie, where manufacturing, construction, logistics and automotive supply chains are deeply integrated with U.S. markets.

Good news: these tariffs can be avoided.

Bypassing the 35% Tariff Is Possible

Goods that meet USMCA’s strict “rules of origin” and certification requirements may qualify for tariff-free trade between Canada, the United States and Mexico.

In 2024, only 38% of eligible Canadian exports to the U.S. were certified under USMCA. At the time, most products entered the U.S. duty-free or faced minimal tariffs under other trade agreements. For many businesses, the additional paperwork simply did not make financial sense.

With the new 35% tariff now in place, that equation has changed.

Government figures indicate that up to 95% of Canadian exports to the U.S. could qualify for tariff exemption under USMCA if properly certified.
– Dominic LeBlanc, Canadian Minister of Foreign Affairs

It is now fiscally essential for exporters to complete the certification process in order to remain competitive and avoid devastating cost increases.

This would represent a potential 57% increase in certified products under USMCA and allow eligible exporters to avoid the full impact of the new tariff.

A Call to Action for the Federal Government

Canadian businesses, particularly small and mid-sized enterprises (SMEs), are now under urgent pressure to integrate certification protocols into their export practices. The federal government must act quickly to ensure this process is accessible, understandable and practical.

“If we want to protect Canadian competitiveness and shield consumers from higher prices, this is the moment to act,” said Paul Markle, CEO of the Barrie Chamber.

The Barrie Chamber of Commerce is calling on the Government of Canada to:

• Provide clear, standardized certification templates and tools
• Launch targeted training and outreach programs, especially for SMEs
• Ensure user-friendly, digital access to resources and documentation
• Offer advisory support for businesses new to the process

“Bypassing the tariff is possible, but only if the process works for everyone, not just the largest or most resourced companies.”

This is no longer about red tape. It is about enabling Canadian businesses to protect themselves from economic harm.

What Businesses Can Do Now

• Review supply chains to determine which products may qualify for USMCA certification
• Begin the paperwork and recordkeeping process immediately
  For a step-by-step guide, visit the Canada Trade Commissioner Service CUSMA Compliance Guide
• Consult trade professionals or industry associations for guidance
• Watch for announcements from government and chambers for tools and resources

The Barrie Chamber will continue to advocate for local businesses and provide updates and resources as they become available.