Status current as of October 16, 2026. U.S.-Canada tariff measures have changed repeatedly in recent months. Confirm current classification, origin, duty, surtax and admissibility requirements with a licensed customs broker or qualified trade counsel before acting.
The U.S.-Canada border has seen significant changes since July.
New U.S. duties have taken effect on specified Canadian goods. Canada introduced new counter-tariffs on certain U.S.-origin products. The United States subsequently introduced import bans on selected Canadian products. Canada ended its Commercial Driver Registration Program. And U.S. English-language proficiency enforcement remains an operational consideration for Canadian drivers entering the United States.
For companies moving freight across the border, these changes can affect more than customs cost. They can influence documentation, carrier selection, routing, driver readiness and how loads are planned during the Q4 peak.
Here is what cross-border shippers, carriers, dispatchers and freight professionals should know.
1. Tariff dates: what changed and when
U.S. Section 338 duties
On July 20, 2026, the United States issued three proclamations under Section 338 of the Tariff Act of 1930 covering specified Canadian products associated with disputes involving alcoholic beverages, dairy and motor vehicles.
The measures established an additional 50% duty on covered goods.
After a three-day suspension, the duties became effective at 12:01 a.m. Eastern on August 22, 2026.
Importantly, qualifying for preferential treatment under USMCA/CUSMA does not by itself exempt a covered product from these Section 338 duties.
That makes tariff classification especially important. A product's treatment depends on whether its specific HTS classification appears within the applicable measures.
September changes
The U.S. measures changed again in September.
On September 8, additional proclamations modified the products covered by the Section 338 measures. Those changes became effective September 15, adding some products and removing others.
For certain covered goods, Section 338 duties may also apply in addition to Section 232 duties.
A second major change followed on September 29.
The United States prohibited imports of certain Canadian alcoholic beverages, certain dairy products and motorcycles with internal-combustion engines over 800 cc.
Goods covered by those bans that had already been imported into the United States before September 29, but had not yet been entered for consumption or withdrawn from warehouse, remained subject to the applicable 50% duty rather than the import prohibition.
For shippers, the important point is simple: check the current tariff classification and effective date before assuming that a previous rate or exemption still applies.
Canada's counter-tariffs
Canada's United States Surtax Order (2026) took effect September 8, 2026.
Canada imposed counter-tariffs of 15%, 25% or 50% on approximately C$27.6 billion of U.S. imports.
Affected sectors include products within categories such as:
Steel and aluminum
Dairy
Appliances
Agricultural equipment
Pulp and paper
Plastics
Electronics
For certain U.S. steel and aluminum products, existing Canadian counter-tariffs increased from 25% to 50%.
Canada's current official tariff list should be checked at the tariff-item level rather than relying only on broad product descriptions.
In-transit treatment matters
Canada's September 8 counter-tariffs generally do not apply to qualifying U.S. goods that were already in transit to Canada when the measures took effect.
Importers may need documentation showing that the goods were Canada-bound and under a carrier's control before the effective date.
That documentation can include records such as bills of lading, cargo control documents and other transportation records.
The U.S. measures use different effective-date rules.
For any shipment moving close to August 22, September 15 or September 29, keeping clear shipment and entry documentation is particularly important.
Remission and tariff relief
Canada continues to provide tariff relief and remission mechanisms in specific circumstances.
Eligibility depends on the goods, their use and the applicable relief program.
These are customs determinations, so importers should discuss potential remission or relief with their licensed customs broker or trade adviser rather than assuming a shipment qualifies.
January 1, 2027: announced, but not yet implemented
On August 24, President Trump announced that tariffs on Canadian cars, trucks, automotive parts and steel would increase to 50% beginning January 1, 2027.
As of October 16, the announced automotive increase should still be treated as a potential future change rather than an implemented January 1 tariff schedule.
For businesses exposed to automotive freight, the practical approach is to model the potential change without treating it as final.
2. CDRP ended September 1. FAST is now the alternative.
The Canada Border Services Agency ended the Commercial Driver Registration Program on September 1, 2026.
CBSA cited low participation and overlap with the Free and Secure Trade program.
Applications submitted on or before September 1 can still be processed, and existing CDRP cards remain valid until they expire.
Drivers who want trusted-trader benefits are encouraged by CBSA to apply for FAST.
FAST is jointly administered by CBSA and U.S. Customs and Border Protection and provides eligible members with access to dedicated lanes and faster processing at participating ports of entry.
Membership currently costs US$50 for five years after approval.
The operational consideration is lead time.
FAST enrollment includes an application, security assessment and interview process. Carriers with drivers still relying on CDRP cards may want to begin the FAST process before those cards expire.
3. U.S. English-language enforcement applies to Canadian drivers too
Commercial drivers operating in the United States must meet the English-language proficiency requirements in 49 CFR 391.11(b)(2).
Drivers must be able to communicate sufficiently in English to respond to official inquiries, understand highway traffic signs and signals and complete required records.
Noncompliance with the requirement has been treated as an out-of-service condition under the CVSA North American Standard Out-of-Service Criteria since June 25, 2025.
FMCSA's current roadside enforcement guidance applies to drivers operating commercial motor vehicles in interstate commerce in the United States, including foreign-domiciled drivers unless a specific exception applies.
For a Canadian carrier, that creates a practical freight risk.
A driver placed out of service during a U.S. trip can disrupt the shipment even if every other part of the load is compliant.
Carriers operating cross-border lanes may therefore want to include English-language readiness within their driver qualification and dispatch processes.
4. What the non-domiciled CDL rule means for Canadian drivers
FMCSA's 2026 non-domiciled CDL rule changed eligibility for commercial licenses issued by U.S. states to certain foreign-domiciled individuals.
It should not be confused with Canadian commercial driver's licenses.
Canadian drivers operating with valid commercial licenses issued by Canadian provinces or territories are generally recognized under the existing U.S.-Canada licensing framework and do not need a U.S. non-domiciled CDL simply because they are Canadian.
The practical lesson for cross-border operations remains straightforward: keep driver licenses, passports, FAST credentials where applicable and other required documentation current and readily available.
5. The Gordie Howe International Bridge adds another routing option
The Gordie Howe International Bridge opened to vehicle traffic on July 27, 2026, adding a new highway-to-highway connection between Windsor and Detroit.
In August, its first full month of operation, Statistics Canada recorded approximately 34,800 commercial transport trucks entering Canada through the new bridge.
For large commercial vehicles, published toll rates are US$8.75 per axle at the standard rate or US$6.90 per axle with a Breakaway account.
The bridge adds capacity and another routing option, but it does not eliminate normal customs requirements.
PARS and PAPS processes, customs documentation and driver requirements still apply.
Carriers rerouting freight should also make sure filings reference the actual port and crossing being used.
6. Border readiness checklist for Q4 2026
For shippers and importers
1. Review products at the tariff-item level.
Ask your licensed customs broker to check the current U.S. Section 338 lists, September modifications and import bans for U.S.-bound freight, as well as Canada's current counter-tariff schedules for Canada-bound freight.
2. Confirm origin correctly.
Country of shipment and country of origin are not necessarily the same thing. Origin rules can materially affect tariff treatment.
3. Keep documentation around effective dates.
Maintain clear records for shipments that moved around August 22, September 8, September 15 or September 29.
4. Ask about available relief.
Where tariff exposure is significant, discuss remission, drawback or other available relief mechanisms with your customs broker or trade adviser.
5. Review CARM financial security.
Canadian importers using Release Prior to Payment should make sure their required financial security remains appropriate as duty and surtax exposure changes.
6. Scenario-plan for January 2027.
Businesses exposed to automotive freight may want to model the announced January 1 tariff increase without assuming that it will necessarily take effect as announced.
For carriers and dispatch teams
1. Start FAST enrollment early.
Do not wait until a driver's existing CDRP card expires.
2. Include English-language readiness in U.S. dispatch decisions.
Drivers operating in the United States need to satisfy the applicable federal English-language proficiency requirement.
3. Keep driver documentation current.
Review licenses, passports and applicable border credentials before dispatch.
4. Add the Gordie Howe Bridge to routing options.
Compare tolls, border conditions and the shipment's actual origin and destination rather than defaulting automatically to one Detroit-Windsor crossing.
5. Keep ACE and ACI eManifest filings accurate and timely.
6. Match PARS and PAPS documentation to the actual crossing.
A last-minute routing change can create problems if customs filings still reference another port.
7. Confirm admissibility before pickup.
For U.S.-bound freight, shippers and their customs brokers should confirm that products are not covered by current import restrictions.
For freight brokers and agents
1. Understand your carrier's cross-border readiness.
Ask whether drivers regularly handle U.S.-Canada freight, whether applicable credentials are current and how the carrier manages English-language compliance for U.S. operations.
2. Ask the right tariff questions without making customs determinations.
Understanding the commodity, origin and direction of travel can help identify potential issues, but classification and tariff determinations should remain with the shipper, importer and licensed customs professionals.
3. Separate transportation pricing from customs costs.
Freight rates, fuel, tolls, duties and surtaxes are different cost components. Keeping them clear reduces confusion when border costs change.
4. Build routing flexibility into Detroit-Windsor freight.
The Gordie Howe International Bridge creates another option that can be considered alongside existing crossings.
What to watch through the end of 2026
Cross-border operators should continue watching several developments:
Whether the announced January 1, 2027 automotive tariff increase is formally implemented
Whether the United States changes its Section 338 tariff lists or import bans
Whether Canada changes its current counter-tariff list or rates
How commercial traffic distributes between Detroit-Windsor crossings as carriers gain experience with the Gordie Howe International Bridge
Any further FMCSA guidance affecting cross-border drivers
None of these developments should be viewed in isolation.
Together, they make accurate documentation, current customs guidance and flexible transportation planning increasingly important for companies moving freight between the United States and Canada.
Related Reading
PARS and PAPS: A Cross-Border Freight Guide
USMCA 2026 Review: What U.S.-Canada Shippers Need to Know
Gordie Howe International Bridge: What Freight Operators Need to Know
A Note From Varstar Alliance
Varstar Alliance works with shippers and carriers moving freight between the United States and Canada.
As border rules, routing options and trade measures continue to change, our role is to help keep the transportation side organized and predictable while working alongside the shipper's licensed customs broker.
If you're planning cross-border freight and need help with transportation, routing or capacity, talk to the Varstar Alliance team.
Sources
U.S. White House presidential proclamations concerning Section 338 measures on Canadian goods, July through September 2026
Office of the United States Trade Representative, Section 338 Canada updates
Canada Border Services Agency, Customs Notice 26-23: United States Surtax Order (2026)
Department of Finance Canada, current list of U.S. products subject to counter-tariffs
Canada Border Services Agency, Commercial Driver Registration Program discontinuation notice
Federal Motor Carrier Safety Administration, English Language Proficiency Roadside Enforcement Policy FAQs, updated October 6, 2026
Federal Motor Carrier Safety Administration, Non-Domiciled CDL 2026 Final Rule FAQs
Windsor-Detroit Bridge Authority, Gordie Howe International Bridge toll and opening information
Statistics Canada, August 2026 international arrivals and commercial truck crossing data
This article is provided for general informational purposes only and does not constitute customs, trade, tax or legal advice. Tariff measures and border requirements can change quickly. Confirm classification, origin, valuation, duty, surtax, remission, admissibility and other customs requirements with a licensed customs broker or qualified trade counsel before acting. Varstar Alliance does not make customs or legal determinations.