CUSMA / USMCACanada-United States-Mexico Agreement (called USMCA in the US). The free trade deal replacing NAFTA. Goods meeting its 'rules of origin' cross borders tariff-free for most categories, but not goods on the Section 338 lists or under Section 232. Penn Wharton estimates 80.2% of imports from Canada and Mexico claimed USMCA in July 2026. At the Jul 1, 2026 joint review the US did not agree to renew CUSMA; it remains in force until 2036 and can still be renewed. Canada suspended trade negotiations with the US in August 2026.
Section 232US law allowing import restrictions for 'national security.' Used for steel and aluminum (50% on mill products, 25% on products made from them, 15% for some equipment), copper (50%), autos and parts (25%), trucks (25%), lumber (10%), cabinets and furniture (25%), patented drugs (100%) and some chips (25%). No expiry. Unaffected by the SCOTUS ruling. No CUSMA exemption on metal mill products; CUSMA-qualifying vehicles and metal products pay only on their non-US content.
Section 122US law allowing temporary tariffs (max 15%, 150 days) for 'balance of payments.' Used after SCOTUS struck down IEEPA: 10% on most imports from Feb 24, 2026 (a threatened rise to 15% was never implemented); CUSMA goods exempt. Expired by law on Jul 24, 2026 and was replaced the same minute by Section 301 forced-labor tariffs. Section 122's 10% global surcharge expired on July 24, 2026 and was replaced the same minute by Section 301 forced-labor tariffs with no end date: 10% for Canada and 18 other economies (CUSMA-qualifying Canadian goods exempt) and 12.5% for China and 40 others. Canada also faces 50% Section 338 tariffs on listed goods since August 22, 2026, stacked on Section 232 duties for two of the three lists since September 15 (up to 75% on some steel and aluminum structural products), and bans on Canadian alcohol, whey and big motorcycles since September 29. Canada's counter-tariffs of 15–50% on C$27.6B of US goods have applied since September 8. The CIT ruled Section 122 unlawful on May 7, 2026, but refunds ordered for three named plaintiffs are on hold pending appeal.
IEEPA (Struck Down)International Emergency Economic Powers Act. Trump used it for 25–35% tariffs. SCOTUS ruled 6-3 it doesn't authorize tariffs (Feb 20, 2026). Over $166B in refunds owed to over 330,000 importers; as of Sep 11, 2026, CBP had accepted about $134.7B in claims and sent about $122B to Treasury for payment.
Framework Agreement (EU)US-EU trade deal signed Jul 2025. Caps most US tariffs on EU goods at 15% (EU autos 15% since Aug 2025); aircraft at 0%. The EU put its side into force Jul 1, 2026. Since Jul 24, 2026 most EU goods pay 10% total under Section 301, below the cap. Steel and aluminum mill products remain at 50% (Section 232); since Jun 8, 2026 EU products made from them pay 15% all-in.
Rules of OriginCriteria determining where a product was 'made' for trade agreement purposes. For CUSMA autos: 75% regional value content required.
HS CodeHarmonized System code. A 6-10 digit number classifying every traded product. Determines which tariff rate applies. Wrong classification = potentially paying 50% instead of 0%.
Anti-Coercion Instrument (ACI)EU's most powerful trade retaliation tool — the 'trade bazooka.' Can restrict US access to EU public procurement, services and markets. Never used.
CountermeasureRetaliatory tariff. Canada charges 15–50% on 629 US tariff items worth C$27.6B (since Sep 8, 2026), including 50% on steel and aluminum, plus 25% on US vehicles that don't qualify for CUSMA. The EU's €93B package (bourbon, motorcycles, metals and more) is suspended. Permitted under international trade law as proportional responses.
RemissionGovernment waiver of tariffs for specific uses. Canada's remission of its counter-tariffs on US steel for general manufacturing ended Jan 31, 2026; relief for aluminum used in manufacturing, and for steel and aluminum used to make vehicles, aircraft and their parts, runs to Jun 30, 2027. The remission framework remains available for requests for exceptional relief.
De MinimisThreshold below which imports enter duty-free. The US ended its $800 threshold for all countries on Aug 29, 2025 — all imports now face tariffs, even small online orders.
Tariff Rate Quota (TRQ)A set quantity enters at a lower rate; over-quota volumes face a higher rate. Canada uses TRQs for steel. EU framework deal uses them for certain agricultural products.
LiquidationFinal customs duty calculation on an import entry. For IEEPA refunds, CBP's CAPE portal handles claims: Phase 1 covers entries that are unliquidated or up to 80 days past liquidation; entries past the 180-day protest window have no refund route unless the importer sued (Phase 3, Oct 6, 2026, covers court plaintiffs).
AD/CVD DutiesAnti-dumping / countervailing duties. Imposed when goods are sold below fair value or are subsidized. Canadian softwood lumber pays 35.16% for most companies ON TOP of the 10% Section 232 tariff.
Section 301US trade law targeting unfair foreign trade practices. The primary tool used against China: general goods (7.5–25% since 2018–19), EVs (100%), solar cells (50%), semiconductors (50%), batteries (25%), critical minerals (25%). Forced-labor investigations of 60 economies opened Mar 12, 2026, and a separate excess-capacity probe of 16 economies (not Canada) on Mar 11. The forced-labor tariffs took effect Jul 24, 2026, replacing Section 122: 10% on 17 economies (incl. Canada, Mexico, UK, India), 12.5% on the rest (incl. China); EU/Taiwan 10% and Japan/Korea/Switzerland 12.5% including the normal duty. No end date. CUSMA-qualifying and Sec 232 goods exempt.
KORUS FTAKorea-US Free Trade Agreement. Provides preferential access for Korean goods entering the US and vice versa. South Korea has used KORUS and semiconductor investment leverage rather than retaliation in the current trade war.
CHIPS ActUS legislation providing $52B+ in subsidies for domestic semiconductor manufacturing. Designed to reduce dependence on Asian (especially Taiwanese and Chinese) chip production. TSMC, Samsung and Intel building new US fabs under this program.
Export Controls (China)China's retaliatory tool beyond tariffs. Since April 2025 China has required licences to export seven rare earths and magnets. It barred gallium, germanium and antimony exports to the US in December 2024 and expanded its rare earth controls in October 2025; both are suspended until November 2026 under the US-China truce. A supply-chain lever rather than a tariff.