On August 25, 2026, the Government of Canada announced a new package of trade countermeasures and financial support programs in response to recent U.S. tariff actions. The announcement follows Canada’s decision to suspend trade negotiations with the United States after concluding that the latest U.S. proposals were not in Canada’s national interest.
The new measures are a direct response to the United States’ decision to impose a 50% tariff on CAD 27.6 billion of Canadian goods, effective August 22, 2026. Canada has announced that it will respond on a “dollar-for-dollar, rate-for-rate” basis through new counter-tariffs on U.S. products and expanded support programs for Canadian workers and businesses.
Key takeaways for importers and businesses
- Effective September 8, 2026, Canada will impose new counter-tariffs of 15%, 25% and 50% on U.S.-origin goods covering approximately CAD 27.6 billion in imports from the United States. The applicable Canadian tariff rate will generally mirror the corresponding U.S. tariff rate imposed on Canadian products.
- The new counter-tariffs target sectors that Canada has identified as particularly affected by U.S. tariff measures, including steel, aluminum, dairy products, appliances, agricultural equipment, pulp and paper products, fish and seafood, furniture, clothing and electronics.
- Goods subject to the highest 50% counter-tariff include certain steel and aluminum products that were previously subject to a 25% surtax, as well as selected furniture and apparel products. Goods subject to a 25% counter-tariff include various appliances, dairy products, fish and seafood products and certain steel and aluminum derivative products.
- The counter-tariffs apply only to U.S.-origin goods, determined in accordance with Canada’s existing country-of-origin marking rules under the CUSMA framework.
- The Government has confirmed that goods already in transit to Canada when the measures take effect on September 8, 2026 will not be subject to the new counter-tariffs.
- Existing Canadian countermeasures, including tariffs on U.S.-origin automobiles, remain in place. Canada’s tariff remission framework will also remain available to consider requests for exceptional relief.
Support package for Canadian workers and businesses
Alongside the new tariff measures, Canada announced a CAD 7.5 billion support package for workers and businesses affected by U.S. tariffs. This package builds on approximately CAD 25 billion of support measures previously introduced since the onset of the Canada-U.S. tariff dispute.
Next steps
The detailed list of products subject to the new counter-tariffs has been published by the Department of Finance. Importers should review the tariff item-specific listings carefully to assess the impact on sourcing and supply chains before the September 8 implementation date.
Businesses importing U.S.-origin goods into Canada should also review origin determinations, evaluate potential duty exposure and consider whether existing tariff remission programs or alternative sourcing arrangements may be available. As Canada-U.S. trade negotiations remain suspended, further tariff and non-tariff measures remain possible.
