CPMA continues to closely monitor developments related to trade between Canada and the United States, and the implementation of tariffs on fresh fruit and vegetable products by both governments.
Please note that a product’s country of origin should be identified in accordance with the Determination of Country of Origin for the Purposes of Marking Goods (CUSMA Countries) Regulations. Products moving in bond to Canada via the United States (that do not enter the stream of U.S. commerce) would not be subject to tariffs.
Members are encouraged to review the additional resources below, which will be updated as further information becomes available.
For Canadian and Mexican product going into the United States
As of April 2, President Trump has announced that USMCA-compliant goods originating from Canada and Mexico will remain tariff-free. Goods originating from Canada and Mexico, including fresh produce, which are not USMCA-compliant remain subject to a 25% tariff.
NOTE: For product going from Canada or Mexico into the United States, members are strongly encouraged to ensure that CUSMA Certificates of Origin for each shipment accompany the entry documents to demonstrate their qualification for tariff-free entry into the U.S. Without proof of qualification, the 25% surtax may apply (at the discretion of the Border Services Officers). Learn more about certifying the origin of goods under CUSMA.
For U.S. products coming into Canada
The initial set of Canadian tariffs on certain U.S. products, announced on March 4th, is still in effect; these include several items pertinent to our industry. Surtax will be assessed transactionally as part of the Commercial Accounting Declaration (CAD) and payable through your CARM Client Portal account with the Canada Border Services Agency (CBSA).
On April 3rd, CPMA sent a letter to Prime Minister Carney and key federal Cabinet Ministers, emphasizing that, so long as Canadian fresh produce is granted tariff-free entry into the United States, fresh fruits and vegetables should be excluded from any retaliatory trade measures against the United States.
NOTE: Additional retaliatory tariffs that came into effect on March 13th and April 4th do not include any fresh produce items.
Recognizing that this is a swiftly evolving situation, we will continue to support our members with information and resources of particular relevance to the fresh produce sector but will not share information readily available through mainstream media.
Our focus remains on advocating for free and fair trade across North America. We are actively engaging with government officials in Canada and the U.S. to seek clarity on the application of tariffs and to ensure that the voices of our members are heard. We will continue to work closely with our colleagues across Canada, the U.S., and Mexico to navigate these challenges and mitigate their impact on the fresh produce sector.
Key statistics on Canada-U.S. fresh produce trade
(Source: Statistics Canada)
In 2023 alone, Canada imported just over $5 billion in fresh produce from the United States, representing a little less than half of all fresh produce imports.
Just as important, Canadian companies exported just over $4 billion in fresh produce to the United States, comprising more than 95% of all fresh produce exports.
Top 5 Commodities Imported from the US (2023)
- Lettuce - $476.7 million
- Strawberries - $464.7 million
- Nuts (“Other” category) - $417.9 million
- Grapes - $270.7 million
- Cauliflower and broccoli - $254.4 million
Top 5 Commodities Exported to the US (2023)
- Cucumbers - $718.8 million
- Peppers - $706.3 million
- Tomatoes - $694.8 million
- Potatoes - $593.2 million
- Mushrooms - $427 million