In response to the U.S. implementation of the 50% Section 338 tariff on certain Canadian products, Canada announced counter-tariffs of 15%, 25%, or 50% on certain imports from the United States, including steel, dairy products, appliances, agricultural equipment, pulp and paper products, and electronics. See the news release.
A list of the relevant tariff classifications subject to the counter-tariffs can be found here.
For purposes of the counter-tariffs, U.S.-origin goods are determined in accordance with Canada's CUSMA marking rules.
The counter-tariffs are scheduled to take effect on September 8, 2026. The counter-tariffs provide an in-transit exception for U.S. goods that are already in transit to Canada on the effective date.
According to the news release, Canada's existing tariff remission framework will remain available to assess requests for exceptional relief. The remission program is application-based, and only companies registered in Canada are eligible to submit remission requests.
The Government will consider remission requests where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-U.S. sources, or where other exceptional circumstances could have severe adverse impacts on the Canadian economy.
Companies that may be affected by the counter-tariffs should consider:
Determining whether their imported products are subject to the new counter-tariffs.
Reviewing sourcing strategies and assessing potential tariff exposure.
Evaluating eligibility for tariff remission.
Monitoring further developments regarding the counter-tariffs before the September 8 effective date.
Should you have any questions concerning the coverage, applicable rates, or application of these counter-tariffs, please reach out to one of our trade professionals listed here.