Canada Imposes Counter-Tariffs on C$27.6-Billion of U.S. Imports, Effective September 8, 2026

On August 25, 2026, Canada announced counter-tariffs on C$27.6-billion of United States imports, effective September 8, 2026.

The measures represent a dollar-for-dollar response to the tariffs imposed on Canadian exports by the U.S. under Section 338 of the U.S. Tariff Act of 1930, which we discussed in our earlier update.

The retaliatory tariffs will affect imports across over 700 product classifications and target the same sectors as the U.S. Section 338 tariffs: steel and aluminum, pulp and paper, dairy, electronics, industrial equipment, furniture, clothing, sports equipment and more. The full list is available here.

The Department of Finance has verbally informed stakeholders that the new tariffs are not intended to “stack” in addition to existing tariffs. In certain sectors, such as steel and aluminum, existing counter-tariffs on U.S. goods will increase from 25% to 50% to match U.S. rates. Other existing counter-tariffs, including against U.S. autos, will continue to apply.

Affected Products

The new tariffs will enter into force at rates of 50%, 25% or 15%, depending on the product. Products affected by 50% counter-tariffs include:

• Steel and aluminum products (ingots, bars, rods, wire, tubes, pipes)
• Dairy products (milk concentrates and powders, whey products, casein)
• Pulp, paper and stationery (chemical wood pulp, envelopes, cartons)
• Plywood, veneered panels and laminated wood
• Electronics (smartphones, monitors, video game consoles)
• Clothing and apparel (suits, jackets, dresses, t-shirts, sweaters, gloves)
• Plastics and rubber articles (floor coverings, tableware, bags)
• Cosmetics and personal care products (perfumes, make-up, hair preparations)
• Sports equipment (golf clubs, exercise machines)

Products affected by 25% counter-tariffs include:

• Fish and seafood (prawns, crabs, lobsters, live fish, fresh fish, frozen fish)
• Wood and lumber (plywood, sawn coniferous wood, softwood)
• Household articles of steel and aluminum (cookware, sanitary ware, kitchenware)
• Washing machines, dryers and dishwasher parts
• Carpets and textile floor coverings
• Knives and cutlery
• Cheeses

Products affected by 15% counter-tariffs include:

• Fork-lift trucks and industrial handling equipment
• Parts for harvesting and agricultural machinery
• Air conditioners
• Moulds for metal, rubber or plastics

Remission and Support Mechanisms

Existing frameworks for requesting remission from duties, including on U.S. products subject to counter-tariffs, continue to apply.

In addition, alongside the counter-tariffs, the Government of Canada announced a C$7.5-billion package of new and enhanced support measures for workers and businesses affected by U.S. tariffs.

Conclusion

Businesses engaged in cross-border trade should assess the potential impact on their supply chains, contractual arrangements and pricing strategies in advance of these countermeasures taking effect.

For more questions about the scope and application of these tariff measures, contact the authors or any member of our International Trade group.