China vs Canada: Import Tariff Comparison 2026

China faces Section 301 tariffs of up to 25% on top of the Section 122 global surcharge, making Canada a compelling sourcing alternative for lumber wood products and related product categories. The total effective tariff rate on imports from China reaches 12.5%, combining the MFN base rate with a Section 122 surcharge of 0% and Section 301 duties that apply exclusively to Chinese-origin goods. By contrast, Canada faces a total effective rate of 37.5%, avoiding the Section 301 penalty entirely. This tariff differential has accelerated supply chain diversification away from China in 2026, with Canada emerging as one of the primary beneficiaries. For importers weighing both origins, the rate spread of 25% is a significant landed cost factor that directly affects margins and pricing decisions.

$2,638saved on $10k sourcing from China(18.1%)
China
12.5%
VS
Canada
37.5%

Tariff Rate Comparison

Lumber & Wood Products
China flag
ChinaBest rate
MFN Base Rate2.50%
Section 1220.00%
Section 23210.00%
Section 301N/A
Bilateral DealN/A
Total12.50%
Canada flag
Canada
MFN Base Rate2.50%
Section 1220.00%
Section 23210.00%
Section 301N/A
Bilateral Deal35.00%
Total37.50%

Rate Comparison by Product Category

ProductChinaCanadaSavings ($10K)
lumber wood products12.5%37.5%$2,638
steel iron products78.0%53.0%$2,638
auto parts components53.0%38.0%$1,583
aluminum products79.0%54.0%$2,638
industrial machinery42.0%37.0%$528

Trade Agreement Status

China has no bilateral agreement with the US and faces the standard Section 122 rate of 15% on most imports. Canada 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 China when importing lumber wood products, where its tariff rates are more competitive. Source from Canada for steel iron products and auto parts components, 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

Lumber & Wood Products
China

Full Landed Cost Breakdown

Based on a $10,000 ocean shipment (FOB value)

Lumber & Wood Products from China
S232 product — excluded from Section 122 surcharge
Results
$11,918.49
Total Landed Cost
Customs Value (FOB + Shipping + Insurance)$10,550.00
MFN Duty (2.50%)$263.75
Section 232 (10.00%)$1,055.00
Total Duties$1,318.75
MPF (0.3464% merchandise processing)$36.55
HMF (0.125% harbor maintenance, ocean)$13.19
Total Fees & Duties$1,368.49
Total Landed Cost$11,918.49
Effective Rate12.50%
Canada

Full Landed Cost Breakdown

Based on a $10,000 ocean shipment (FOB value)

Lumber & Wood Products from Canada
S232 product — excluded from Section 122 surcharge
Results
$14,555.99
Total Landed Cost
Customs Value (FOB + Shipping + Insurance)$10,550.00
MFN Duty (2.50%)$263.75
Bilateral Deal (35.00%)$3,692.50
Total Duties$3,956.25
MPF (0.3464% merchandise processing)$36.55
HMF (0.125% harbor maintenance, ocean)$13.19
Total Fees & Duties$4,005.99
Total Landed Cost$14,555.99
Effective Rate37.50%

Savings Analysis

On a $10,000 shipment of lumber wood products, importing from China saves $2,638 in duties compared to Canada — a 66.7% reduction in total import costs. China incurs $1,319 in duties on the $10,000 shipment, while Canada incurs $3,956. This difference compounds across larger order volumes and is a key factor in supplier selection decisions for importers sourcing lumber wood products.

Frequently Asked Questions

The total effective tariff rate on lumber wood products is 12.5% from China and 37.5% from Canada 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.

China does not have a formal trade agreement with the United States. Imports from China are subject to the standard Section 122 global surcharge of 15% on most goods, stacked on top of MFN base rates.

Yes, Canada is a USMCA member. Qualifying goods enter the US duty-free at 0%, making Canada 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 78% from China. On a $10,000 shipment, this 25% rate difference saves $2,500 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. China is exempt from Section 122 for this product category. Canada's bilateral deal rate of 35% replaces Section 122. Note that Section 122 is scheduled to expire on July 24, 2026 — importers should model both current and post-expiry scenarios when planning shipments.

Disclaimer: CalcMyTariff.com provides tariff estimates for informational purposes only. Actual duty rates depend on the specific HTS classification of your goods, which requires professional customs brokerage expertise. Rates shown reflect our best interpretation of currently published tariff schedules and may not include all applicable duties, anti-dumping duties, countervailing duties, or special tariffs. Consult a licensed US customs broker for binding determinations. Tariff rates change frequently — verify current rates with CBP or USITC before making import decisions.

Tariff rates from Tax Foundation, USITC, and Penn Wharton Budget Model. Last verified March 27, 2026.