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← Tariff Schedule
HS 8605.00High

Railway passenger coaches, not self-propelled

Chapter 86 — Railway and tramway vehicles|Broad tariff
Current tariff rate
25%
Prior rate
0% (CUSMA)
Canadian export value
$620M
CUSMA eligible
Yes (RVC 75%)
TARIFF DETAILS
Effective date
2025-03-04
Tariff type
Broad tariff
CUSMA INFORMATION
Eligibility
Eligible
RVC threshold
75%
SECTOR IMPACT

Rail vehicle manufacturers face cost overruns on existing FTA-funded US transit contracts. Buy America provisions create additional compliance complexity.

NOTES

Alstom and other rail manufacturers produce passenger rail vehicles in Canadian facilities for US transit authorities. Long procurement cycles mean tariff exposure on existing contracts.

MITIGATION STRATEGIES

Actionable options for affected Canadian exporters

  1. 1

    CUSMA RVC optimization

  2. 2

    US production facility

  3. 3

    Pricing pass-through

RELATED TARIFF CODES
8607.19Moderate

Parts of railway vehicles, axles and wheels

25%Moderate

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