CUSMA-Compliant Products: Shielded from U.S. Tariffs

May 7, 2025

Affilia would like to thank Bernard Colas for preparing this blog.

The Canada-United States-Mexico Agreement (CUSMA) has become a vital tool for Canadian exporters navigating the latest wave of U.S. tariffs. Recent executive orders from the U.S. administration have imposed a 25% tariff on most Canadian goods and a 10% tariff on certain energy products and potash. However, CUSMA-compliant products are exempt from these tariffs, offering a significant competitive advantage to businesses that meet the agreement’s requirements.

What Does CUSMA Compliance Mean?

CUSMA compliance hinges on the concept of “rules of origin.” To qualify, a product must be sufficiently produced or transformed within North America. This can mean:

The product is wholly obtained or produced in Canada, the U.S., or Mexico (e.g., minerals mined in Canada, vegetables harvested in Canada).
The product is manufactured using imported materials but meets specific product-specific rules, such as a required percentage of regional value content, a change in tariff classification, or designated production processes.

For example, most Canadian furniture qualify as CUSMA-compliant if they meet regional value thresholds and other criteria. These parts are exempt from the 25% U.S. tariff, while assembled furniture or knock-down kits that do not meet the origin rules remain subject to duties.

How to Claim the Exemption?

The U.S. government has clarified that the vast majority of Canadian exports-over 98% of tariff lines-can claim CUSMA preference if they meet the rules of origin.

It is not enough for goods to simply meet the rules of origin. They must be accompanied by a valid origin certification. This document, completed by the exporter, producer, or importer, must include:

Name and contact information of certifier, exporter, producer, and importer;
Description and HS code of the good;
Origin criterion and certifier’s signature;
Blanket period (if applicable).

Without this certification, goods will be treated as non-originating and subject to the full tariffs.

Why CUSMA Compliance Matters Now?

Before the recent tariff increases, many Canadian exporters relied on low or zero tariffs under World Trade Organization (WTO) rules and did not always claim CUSMA preference. Now, with MFN status no longer sufficient to avoid U.S. duties, CUSMA compliance is essential for tariff-free access.

Key Takeaways for Exporters

Review your supply chains and ensure your products meet CUSMA rules of origin.
Prepare and maintain proper certification of origin for every shipment.
Consult customs law experts, such as Affilia’s Zave Kaufman and Jean-Marc Clément, to navigate product-specific rules and documentation.

By prioritizing CUSMA compliance, Canadian businesses can continue to access the U.S. market competitively, shielded from the latest round of tariff Executive Orders, and maintain their cross-border trade advantage.

For any questions or further information on CUSMA compliance and cross-border strategy, feel free to contact Affilia.