Canada Announces Counter-Tariffs on $27.6 Billion in U.S. Imports Effective September 8
The new tariffs significantly expand the country’s response to U.S. trade measures, applying rates of up to 50% to American goods across hundreds of tariff items.
Canada has announced counter-tariffs on U.S. imports at rates of 15%, 25%, and 50%, effective September 8, 2026.
The measures will cover $27.6 billion in American imports and match the rates applied under recent U.S. Section 338 and Section 232 tariffs on Canadian goods.
The announcement follows the United States’ decision to impose 50% tariffs on $27.6 billion in Canadian goods. They were initially scheduled to take effect on August 19, but were paused for three days while negotiations continued.
Canada and the United States did not reach an agreement during the pause, and Canada subsequently suspended the negotiations.
The U.S. tariffs took effect on August 22, and, on August 25, Canada announced its response, describing the counter-tariffs as dollar-for-dollar and rate-for-rate.
The counter-tariffs on U.S. imports will take effect at 12:01 a.m. on September 8, 2026.
They will apply only to goods originating in the United States. For this purpose, U.S.-origin goods are those eligible to be marked as goods of the United States under the country of origin rules for CUSMA countries.
Goods shipped from the U.S. are not automatically subject to the tariffs if they originate elsewhere. Entitlement to preferential tariff treatment under CUSMA is also a separate determination from origin for marking purposes.
U.S. goods already in transit to Canada when the measures take effect will not be subject to the new tariffs.
The Department of Finance has published a tariff-item-level list of affected products covering goods such as:
Goods subject to the 50% rate include steel and aluminum products that were previously subject to a 25% counter-tariff, as well as furniture and clothing and apparel.
Products subject to the 25% rate include appliances, dairy products, fish and seafood, and certain steel and aluminum derivatives.
Other listed products are subject to the 15% rate.
Importers must check their product classifications against the list and Canada’s Customs Tariff to confirm whether the tariffs apply to their goods and at what rate.
Canada’s other tariffs on U.S. imports, including those applying to motor vehicles, remain in force.
The government’s tariff remission framework will also remain available to assess requests for exceptional relief.
Alongside the counter-tariffs, the federal government announced a $7.5-billion support package for tariff-affected workers and businesses.
The package includes $1.5 billion for regional business support, a $500 million BDC liquidity stream, $2 billion for business diversification, and $3.5 billion for worker and employer supports, as well as broader access to BDC programs and new flexibilities under the Large Enterprise Tariff Loan facility.
The Canada Border Services Agency (CBSA) is expected to publish a Customs Notice explaining how the counter-tariffs on U.S. imports and the in-transit exception will be administered.
Canadian importers are advised to review the tariff classification and country of origin for goods scheduled to arrive on or after September 8, 2026, and keep records for shipments that may qualify for the in-transit exception.
Cole International provides trade consulting and customs brokerage services to help Canadian businesses navigate changing tariff measures and manage their customs obligations.
Reach out to one of our trade professionals for help reviewing tariff classification, origin, and potential duty exposure.