Updated U.S. Duties and Canadian Counter-Tariffs

The United States and Canada have both recently implemented new tariffs on certain goods moving between the two countries. The measures are part of the ongoing trade dispute between the U.S. and Canada and are intended to address what each government considers unfair treatment of its trade and businesses. 

The newly implemented duties affect different products and have different effective dates. Companies importing or exporting between the U.S. and Canada should review their products and upcoming shipments to determine whether additional duties apply.

U.S. Section 338 Tariffs on Canadian Goods

Effective August 22, 2026, the U.S. began applying an additional 50% duty to certain Canadian-origin products. The 50% additional duty applies to specific products rather than all Canadian imports. The affected products are identified under HTSUS Chapter 99 headings 9903.03.12, 9903.03.13 and 9903.03.14.The actual HTSUS classification must be checked to determine whether a product is covered. 

Examples of products affected

The covered products include specific items within categories such as:

• Alcoholic beverages
• Dairy products and dairy ingredients
• Agricultural and food products
• Certain wood and building products
• Textiles and apparel
• Certain consumer and household products
• Certain electronics and electrical products
• Machinery and industrial products
• Other specifically identified Canadian goods

The complete list is based on individual HTSUS classifications, so a product should not be considered subject to the 50% duty based solely on its general commodity description. 

Section 338 Duty Exclusions

Certain Canadian products are excluded from the additional 50% duty. Some major Canadian export categories are specifically listed under HTSUS 9903.03.15 and 9903.03.16 at a 0% additional rate. These include specified:

• Steel, aluminum and copper products
• Certain vehicle parts and vehicles
• Medium- and heavy-duty vehicles and parts
• Certain wood products
• Semiconductors
• Patented pharmaceutical products
• Civil aircraft and aircraft components

Other applicable duties, including existing trade remedies, may still apply to these products.

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Canada: New Duties on Certain U.S. Goods

Canada has announced new counter-tariffs on certain U.S.-origin goods in response to the latest U.S. tariff measures. The new Canadian tariffs take effect September 8, 2026, with rates of 15%, 25% or 50%, depending on the product. The new counter-tariffs to be implemented cover approximately $27.6 billion in U.S. imports. The Canadian government has published the complete list of affected products by tariff classification. This list includes specific U.S.-origin products in categories such as:

• Steel and aluminum
• Dairy products
• Fish and seafood
• Appliances
• Agricultural equipment
• Pulp and paper
• Electronics
• Other specifically identified U.S. products

Canada states that the counter-tariffs will focus on sectors most affected by the U.S. tariff measures, with the individual Canadian tariff rate generally matching the corresponding U.S. tariff rate. Some existing Canadian counter-tariffs will remain in place, including measures covering U.S. automobiles, while certain existing steel and aluminum counter-tariffs will increase from 25% to 50%.

The new Canadian countermeasures apply only to qualifying U.S.-origin goods and do not apply to U.S. goods already in transit to Canada when the measures take effect.