Tariff Rate Comparison
Auto Parts & Components| Rate Type |  CanadaUSMCA |  MexicoSave 10.0pp vs highestUSMCA |
|---|---|---|
| MFN Base RateMost Favored Nation tariff | 3.00% | 3.00% |
| Section 122Emergency surcharge (expires ~Jul 24, 2026) | 0.00% | 0.00% |
| Section 232Steel & aluminum tariff | 25.00% | 25.00% |
| Section 301China-only additional tariff | N/A | N/A |
| Bilateral DealNegotiated rate replaces S122 | 35.00% | N/A |
| Total Effective Rate | 38.00% | 28.00% |
Rate Comparison by Product Category
| Product | Canada | Mexico | Savings ($10K) |
|---|---|---|---|
| auto parts components | 38.0% | 28.0% | $1,055 |
| steel iron products | 53.0% | 53.0% | $0 |
| lumber wood products | 37.5% | 12.5% | $2,638 |
| aluminum products | 54.0% | 54.0% | $0 |
| industrial machinery | 37.0% | 17.0% | $2,110 |
Trade Agreement Status
Canada is a USMCA member — qualifying goods enter the US duty-free at 0%. Mexico is a USMCA member — qualifying goods enter the US duty-free at 0%. For products under Section 232 national security tariffs, the bilateral deal or Section 122 rate does not apply — S232 rates govern instead. China-origin goods additionally face Section 301 tariffs that stack on top of all other duties, making trade agreement status a defining factor in the total tariff burden.
When to Source from Each Country
Source from Canada when importing steel iron products and aluminum products, where its tariff rates are more competitive. Source from Mexico for auto parts components and lumber wood products, where it carries the tariff advantage. Beyond tariff rates, factor in lead times, minimum order quantities, quality standards, and freight costs — the total landed cost comparison may shift depending on shipment volume and logistics conditions.
Full Landed Cost — $10,000 Shipment
Auto Parts & ComponentsCanadaFull Landed Cost Breakdown
Based on a $10,000 ocean shipment (FOB value)
MexicoFull Landed Cost Breakdown
Based on a $10,000 ocean shipment (FOB value)
Savings Analysis
On a $10,000 shipment of auto parts components, importing from Mexico saves $1,055 in duties compared to Canada — a 26.3% reduction in total import costs. Mexico incurs $2,954 in duties on the $10,000 shipment, while Canada incurs $4,009. This difference compounds across larger order volumes and is a key factor in supplier selection decisions for importers sourcing auto parts components.
Frequently Asked Questions
The total effective tariff rate on auto parts components is 38% from Canada and 28% from Mexico under current 2026 tariff policy. These rates include the MFN base rate, applicable Section 122 surcharge or bilateral deal rate, Section 232 duties for covered products, and Section 301 tariffs for Chinese goods. Use the CalcMyTariff.com calculator above to enter your specific invoice value and shipping details for a precise landed cost breakdown.
Yes, Canada is a member of USMCA (the United States-Mexico-Canada Agreement). Goods that qualify under USMCA rules of origin enter the US at 0% duty, bypassing the Section 122 surcharge and all other tariff layers. Non-qualifying goods from Canada face the applicable tariff rates.
Yes, Mexico is a USMCA member. Qualifying goods enter the US duty-free at 0%, making Mexico one of the most competitive sourcing origins for tariff purposes. Non-qualifying goods face standard tariff rates.
Canada is cheaper for steel iron products with a 53% total tariff rate, compared to 53% from Mexico. On a $10,000 shipment, this 0% rate difference saves $0 in duties when sourcing from Canada.
Section 122, enacted in February 2026 for up to 150 days, imposes a global surcharge on most US imports. Canada's bilateral deal rate of 35% replaces the standard Section 122 rate. Mexico is exempt from Section 122 for this product category. Note that Section 122 is scheduled to expire on July 24, 2026 — importers should model both current and post-expiry scenarios when planning shipments.