Canada Hits Back With New Tariffs
- Annkaren Wambui
- 21 hours ago
- 6 min read
🔓 Canada will impose new 15%, 25% and 50% counter-tariffs on targeted U.S. goods from 8 September 2026.
Summary: Canada has announced new counter-tariffs of 15%, 25% and 50% on targeted goods originating in the United States, effective from 8 September 2026. The measures cover approximately $27.6 billion of U.S. imports and target products across sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. Businesses importing affected goods into Canada should review the official tariff list, confirm whether their products meet Canada's origin rules for the measures and assess whether tariff remission may be available. |
Canada's Response to U.S. Tariffs
Canada's new measures follow the escalation of trade tensions between the two countries and the introduction of new U.S. tariffs affecting Canadian goods.
According to the Government of Canada, the new countermeasures are designed to match U.S. tariff treatment dollar for dollar, applying rates of 15%, 25% or 50% to products drawn from those targeted by U.S. Section 338 and Section 232 tariffs.
The new measures will take effect at:
12:01 a.m. on 8 September 2026
Businesses importing goods into Canada should therefore review their potentially affected shipments and sourcing arrangements ahead of the effective date.
What Products Are Being Targeted?
Canada's new countermeasures cover a broad range of products imported from the United States.
The Government of Canada has identified targeted sectors including:
Steel and certain metal products
Wood products and hardware
Dairy products
Fish and seafood
Appliances
Agricultural equipment
Pulp and paper
Electronics
Individual products are subject to different tariff rates of 15%, 25% or 50%, depending on the specific product and its corresponding treatment under Canada's countermeasures.
This means businesses should not assume that an entire product category is subject to one standard rate.
The specific tariff classification and product description must be checked against Canada's official list.
15%, 25% or 50%: The Applicable Rate Matters
Canada's countermeasures introduce three different tariff rates:
🔹 15% Counter-Tariff
Certain targeted products will be subject to a 15% tariff.
🔹 25% Counter-Tariff
The Government of Canada has confirmed that products subject to the 25% rate include categories such as:
appliances;
dairy products, including cheese;
fish and seafood; and
certain steel and aluminium derivative products.
🔹 50% Counter-Tariff
Other targeted products will be subject to a 50% tariff, including products listed at the applicable tariff-item level in Canada's official schedule.
The correct rate depends on the specific product.
Importers should therefore review the relevant Canadian tariff classification and official product list rather than relying solely on a general product description.
The Tariffs Apply to Goods Originating in the United States
One of the most important compliance points concerns origin. Canada's new countermeasures apply only to targeted goods originating in the United States.
For these purposes, Canada considers goods to be originating in the United States where they are eligible to be marked as goods of the United States under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
This means importers should not simply assume that goods shipped from the United States are automatically subject to the new tariffs.
The relevant origin rules and marking requirements need to be considered.
A U.S. Shipping Location Is Not the Same as Automatically Establishing U.S. Origin
For businesses with complex North American supply chains, goods may be:
manufactured in one country;
processed in another;
distributed from the United States; and
imported into Canada.
Businesses should therefore review whether the goods meet the applicable criteria for being treated as originating in the United States for the purposes of Canada's countermeasures.
Is Tariff Remission Available?
Potentially, yes.
Canada's existing tariff remission framework remains available to assess requests for exceptional relief from the countermeasures.
Businesses facing significant difficulties as a result of the new tariffs may therefore wish to assess whether an application for remission could be appropriate.
However, eligibility for relief will depend on the specific circumstances and applicable Canadian requirements.
Businesses should review the relevant remission framework carefully before assuming that relief will be available.
What About U.S. Exports from Canada?
For now, Canada's newly announced measures focus on tariffs applied to targeted U.S. goods imported into Canada.
Based on the current Government of Canada announcements, the new countermeasures are structured as import tariffs, rather than introducing a new general system of export controls or export taxes on Canadian goods sent to the United States.
Businesses should nevertheless continue monitoring developments closely as the wider U.S.–Canada trade dispute remains subject to further negotiation and policy changes.
Goods Already in Transit
Canada has confirmed an important transitional point:
The new countermeasures do not apply to U.S. goods that are already in transit to Canada on the day the measures come into force.
Importers with shipments approaching the effective date should therefore carefully review:
shipment dates;
transport documentation;
arrival dates;
the status of goods in transit; and
the applicable entry requirements.
Quick Reference: Canada's New Counter-Tariffs
📅 Effective Date
8 September 2026 at 12:01 a.m.
💰 Tariff Rates
🔹 15%🔹 25%🔹 50%
🇺🇸 Who Is Affected?
Targeted goods originating in the United States, based on Canada's applicable origin and marking rules.
📦 Products Include
Steel, wood products, hardware, dairy, fish and seafood, appliances, agricultural equipment, pulp and paper, electronics and other products listed in Canada's official schedule.
💡 Possible Relief
Canada's tariff remission framework remains available for requests for exceptional relief.
🚚 Goods in Transit
U.S. goods already in transit to Canada when the measures take effect are not subject to the new countermeasures.
What Should Businesses Do Now?
Businesses importing goods from the U.S. into Canada should act before 8 September to assess their exposure and prepare for new measures. Review your imported products against Canada's targeted tariff list to identify affected items. Confirm the Canadian HS tariff classification and product description for each. Check the origin of goods to see if they qualify as U.S. origin for countermeasures, and determine if they face a 15%, 25%, or 50% counter-tariff.
Evaluate goods in transit for potential transitional treatment. If the impact is significant, consider applying for tariff remission or relief. Ensure procurement, logistics, customs brokers, and trade compliance teams have the latest tariff information and update internal instructions accordingly.
The Bottom Line
Canada has responded to the latest U.S. tariff measures with significant new counter-tariffs covering approximately $27.6 billion of imports from the United States.
From 8 September 2026, targeted goods may face additional tariffs of 15%, 25% or 50%.
For importers, the key question is not simply whether a product comes through the United States.
Businesses need to determine:
Is my product on Canada's targeted list, does it meet the relevant U.S. origin criteria, and what tariff rate applies to its specific tariff classification?
With the effective date approaching, businesses importing potentially affected products should review their classifications, origin determinations, shipments and customs procedures now.
Sources
🇨🇦 Government of Canada – Targeted Countermeasures
Canada's official announcement provides details of the new countermeasures and the sectors affected.
📋 Official List of Targeted Products
The official Government of Canada list provides the relevant tariff items, HS classifications, product descriptions and applicable tariff rates.
Businesses should consult the official tariff-item list and Canada's Customs Tariff when determining whether a specific product is covered.
🎥 US Section 338 Canada Tariffs: 5 Checks for Importers
New U.S. Section 338 tariffs on certain goods from Canada are now in force. In this video, Customs Manager outlines five practical checks for importers, including product coverage, HTSUS classification, USMCA treatment, entry dates, Chapter 99 reporting and applicable exclusions or additional duties.
The video provides a practical companion to this article for businesses reviewing whether their Canadian imports are affected by the new measures and what their trade compliance teams should check before filing entries.
Need Help Reviewing Your U.S. Import Compliance?
At Customs Manager Ltd, we support businesses navigating complex and rapidly changing customs and international trade requirements.
Customs & Trade Consultancy
Receive practical advice on customs compliance, tariff changes, product classification, origin and the implications of changing international trade rules for your business.
Discuss your customs or international trade challenges with one of our experts.
Schedule a free one-hour consultation here → Book Expert Call.
Professional Training
Build internal capability through expert-led training covering customs compliance, international trade, tariff classification, origin and emerging regulatory requirements.
Trade Intelligence
Stay informed about changing customs, tariffs, sanctions, export controls and international trade developments through Customs Manager's trade intelligence services.
Try PRO FREE for 30 days - no credit card, no online sign-up. Simply email info@customsmanager.org to get started.
Free Information and Updates
Related Topics
#CBP #Section338 #USCustoms #Canada #Tariffs #HTSUS #ImportCompliance #TradeCompliance #CustomsBroker #Chapter99 #CustomsManager #TradeIntelligence
Author
Ann Karen | Head of Growth
Updated: August 2026
Disclaimer
This article is provided for general informational purposes only and does not constitute legal, customs or tax advice. Businesses should seek professional advice based on their individual trading arrangements and compliance obligations.
Comments