Canada-U.S. Tariffs: What Changed?
Updated: Sep 14
🔓 Canada has introduced new counter-tariffs on U.S. goods. What do importers need to know?
Summary: Canada has imposed new counter-tariffs on U.S. goods, affecting the Canada-U.S. trade relationship. Starting 8 September 2026, surtaxes of 15%, 25%, or 50% will apply to products in sectors like steel, aluminium, dairy, and electronics. Meanwhile, the U.S. has adjusted tariffs on Canadian goods, with some reaching 50%, and introduced new import restrictions. Businesses must now consider product, origin, tariff treatment, and additional measures to calculate the landed cost accurately. |
Canada has introduced new counter-tariffs
The Canada-U.S. trade relationship has entered another important stage.
From 8 September 2026, Canada is applying new counter-tariffs to specified goods originating in the United States. The Canadian measures impose additional surtaxes of 15%, 25% or 50%, depending on the product.
The measures cover approximately C$27.6 billion of imports from the United States and target products in sectors including:
Steel and aluminium
Dairy
Appliances
Agricultural equipment
Pulp and paper
Plastics
Electronics
Canada has also stated that existing counter-tariffs, including measures affecting U.S. automobiles, continue to apply.
This means businesses cannot determine their Canadian import cost simply by looking at the normal Customs Tariff duty rate.
They now need to ask: Is the product subject to a Canadian counter-tariff as well?
What is actually being charged?
The new Canadian measure operates as a surtax, collected by the Canada Border Services Agency (CBSA).
For covered goods originating in the United States, the additional surtax is currently 15%, 25% or 50% of the value for duty, depending on the applicable tariff item. The additional surtax does not simply replace the normal customs treatment. The CBSA explains that the counter-tariffs are added to the applicable duties and that GST/HST treatment also needs to be considered.
For importers, this makes the tariff classification and customs valuation process particularly important. A product that previously had a relatively low duty cost could now have a significantly higher import cost if its tariff item is included in the counter-tariff list.
The origin of the goods matters
One of the most important points for businesses is that the Canadian counter-tariffs apply to goods originating in the United States. Canada's Department of Finance states that the relevant U.S.-origin goods are determined using Canada's rules for determining country of origin for marking purposes under the CUSMA Countries Regulations.
This matters because where a shipment is exported from is not necessarily the same as where the goods originate. For example, a company could purchase goods from a U.S. supplier but still need to examine the applicable origin rules before determining whether the Canadian counter-tariff applies. Similarly, goods moving through the United States do not automatically become U.S.-origin goods.
Businesses therefore need to keep origin analysis separate from the physical movement of the shipment.
The U.S. is also applying additional measures
The situation is not one-sided. The United States has imposed additional duties on certain Canadian goods under Section 338 of the U.S. Tariff Act of 1930. The White House stated that the additional Section 338 measures include 50% tariffs on certain Canadian products, with the measures applying in addition to certain Section 232 duties. The U.S. measures have also continued to evolve.
On 8 September 2026, the United States announced further changes to the scope of the Section 338 measures. Certain products remain subject to the additional 50% duty, while others were removed from its scope. Those changes take effect on 15 September 2026.
The United States also announced import bans affecting certain Canadian products, with those restrictions scheduled to take effect on 29 September 2026.
This is why businesses should avoid relying on a single headline rate when assessing Canada-U.S. trade.
🎥 US 50% Canada Tariffs: 5 Checks for Importers
In this Video, Customs Manager explains the U.S. 50% additional tariffs on certain Canadian-origin goods and the five key checks importers should make when reviewing their customs entries. The video covers HTSUS classification, USMCA treatment, entry dates, Chapter 99 filing requirements, and exclusions or other applicable duties.
What this means for importers
For companies moving goods between Canada and the United States, the immediate priority should be product-by-product assessment.
Before importing or exporting, businesses should check:
1. What is the product? Confirm the correct tariff classification. A change in classification can change the applicable measure.
2. Where did the goods originate? Do not assume that the supplier's location or shipping point establishes origin.
3. Which tariff measure applies? Check the applicable Canadian or U.S. additional duty, surtax, tariff or restriction.
4. Is there an exclusion? The measures contain product-specific exclusions and modifications. The official tariff lists should therefore be checked rather than relying on general sector descriptions.
5. What is the effective date? Tariff measures are changing quickly. A rate that applied to an earlier shipment may not apply to a later one.
6. What is the impact on landed cost? Additional tariffs can affect purchasing decisions, pricing, margins and supply-chain sourcing.
Don't rely on the headline tariff rate
One of the biggest risks in the current environment is treating statements such as “Canada has a 50% tariff” or “the U.S. has a 50% tariff on Canada” as if they describe every product moving between the two countries. They do not.
The actual customs treatment depends on the specific product, tariff classification, origin, applicable measure, exclusions and effective date. Canada itself describes its official product list at the tariff-item level and advises that it should be read together with the applicable Canadian Customs Tariff. That is the level at which businesses should be checking their exposure.
Canada–U.S. Tariff Check
Before importing or exporting, businesses should check:
1. Product: What exactly are we importing or exporting?
2. HS classification: Is the tariff classification correct?
3. Country of origin: Where do the goods legally originate?
4. Tariff measure: Is an additional tariff or surtax applicable?
5. Applicable rate: What percentage applies to the product?
6. Effective date: When did the relevant measure take effect?
7. Exclusions: Does an exclusion or exception apply?
8. Documentation: Can the classification and origin be supported?
9. Cost impact: What is the revised landed cost?
10. Supply chain: Should sourcing, routing or purchasing decisions be reviewed?
The Canada-U.S. tariff picture is still moving
The latest developments show how quickly the trade relationship can change.
Canada's new counter-tariffs took effect on 8 September 2026, while the United States has simultaneously modified the scope of its Canadian measures and introduced additional restrictions.
For customs and trade professionals, this creates a practical challenge:
The tariff decision cannot be separated from the customs data behind it.
Correct classification, origin determination, documentation and tariff monitoring are becoming increasingly important for businesses trading across the Canada-U.S. border. And because the measures are continuing to evolve, businesses should check the applicable official tariff lists and customs notices before making decisions on individual shipments.
🔐 Want the practitioner-level analysis?
The 🔐 PRO edition goes further into the Canada-U.S. tariff measures and what customs and trade professionals need to check when determining the applicable treatment.
It will provide a more detailed practitioner-focused assessment of:
Canadian counter-tariffs
U.S. additional duties
Product and tariff classification
Country of origin
Effective dates
Exclusions and exceptions
Customs documentation
Duty exposure and practical compliance considerations
Need Help Managing Canada-U.S. Tariff Changes?
At Customs Manager Ltd, we help businesses navigate changing customs, trade and supply-chain compliance requirements. With new Canadian counter-tariffs on certain U.S.-origin goods and additional U.S. duties affecting Canadian goods, businesses need to understand how changing tariff measures may affect their imports, exports and landed costs.
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Related Topics
#CanadaUSTariffs #USCanadaTrade #CanadaTrade #USTrade #Tariffs #CustomsCompliance #TradeCompliance #ImportCompliance #Customs #InternationalTrade #SupplyChain #CustomsManager
Author
Ann Karen | Head of Growth
Updated: September 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.
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