Canada Countermeasures to U.S. Tariffs

In response to the U.S. decision to impose a 50% tariff on USD $19.9 billion (CDN $27.6 billion) in Canadian goods, effective August 22, 2026, the Canadian government has announced a dollar-for-dollar retaliatory tariff program.  Effective September 8, 2026, Canada will impose counter-tariffs of 15%, 25% or 50% on specified U.S.-origin goods, mirroring the rates applied by the U.S. under Section 338 and Section232 tariffs.  The measures target sectors such as steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, electronics, furniture, apparel, personal care products and athletic equipment.  The tariffs apply to U.S.-origin goods, meaning exporters and importers will need to carefully verify the product’s country of origin and HS classification.  Importers should also expect the additional tariff to be collected at the Canadian border, increasing the delivered cost of U.S. products and potentially making them less competitive against Canadian or third-country alternatives.

Companies should also monitor Canada’s tariff list closely because the situation remains fluid and additional countermeasures are possible.  Notably, Canada’s new counter-tariffs will not apply to U.S. goods already in transit to Canada on September 8, providing a limited opportunity for exporters with affected shipments to accelerate deliveries where commercially feasible.

The counter-tariffs are part of a broader strategy that includes suspended negotiations with the U.S. over a comprehensive trade deal, as Canada rejected terms it deemed unfavorable.  

For a complete list of Canada’s counter tariffs, visit: List of products from the United States subject to counter-tariffs effective September 8, 2026.

The U.S. Commercial Service in Canada is closely following the developments in the Canadian economy. For more information on how we can assist U.S. companies export to Canada, please contact Commercial Specialist Tracey Ford