Canada's counter-tariffs on C$27.6 billion of U.S. goods take effect
Canada began collecting surtaxes of 15%, 25% or 50% on C$27.6 billion of U.S. goods at 12:01 a.m. on September 8, 2026. The measures answer the 50% U.S. Section 338 duties that took effect on August 22 and match them dollar for dollar. Washington responded the same day with the import bans and scope changes covered elsewhere on this tracker.
What this affects
Canada
United StatesThe update
Canada announced the countermeasures in late August 2026, after the United States put a 50 percent Section 338 duty on Canadian goods on August 22. The Department of Finance product list is dated August 26. The surtaxes took effect at 12:01 a.m. on September 8, 2026 and cover C$27.6 billion of imports from the United States, the same value as the Canadian goods hit by the U.S. action.
The rate is 15, 25 or 50 percent, and each product carries the rate the United States applies to the same goods under Section 338 or Section 232. The list is concentrated in steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics. U.S. goods that were already in transit to Canada on September 8 are exempt. Canada's existing remission framework continues to apply, including for eligible U.S. goods used in manufacturing, processing, agricultural production, food and beverage packaging, healthcare, public safety and national security. Canada's earlier counter-tariffs, including those on U.S. automobiles and on steel and aluminum, stay in force separately.
On the evening of September 8 the President signed five proclamations in response, changing the scope of the 50 percent duties from September 15 and banning certain Canadian dairy, alcohol and motor vehicle products from September 29, 2026. Those appear as separate entries on this tracker.
Impact
This one does not change what a U.S. importer pays at a U.S. port. It changes what a U.S. company's Canadian customer pays. A U.S.-made product sold into Canada now lands up to 50 percent more expensive than it did on September 7, while the same product made in Mexico, Europe or Asia does not carry the surtax. Companies that serve Canada from a U.S. plant or warehouse are the ones exposed, and the U.S. reply on the same day shows the dispute is still escalating rather than settling.
What to watch
The surtax applies to goods of U.S. origin, so origin under the marking rules decides, not the address the goods ship from; confirm origin with a Canadian customs broker before quoting. Remission is available only for the listed uses and has to be claimed. The September 29 U.S. import bans are the next scheduled step, and further Canadian measures in reply are possible.
How to prepare
- 1Check your Canadian sales against the list
Match the tariff items on the Department of Finance list to what you ship north, and note the rate on each line.
- 2Confirm the origin of what you ship to Canada
Goods made outside the United States and distributed from a U.S. warehouse are generally not U.S.-origin goods. Get the origin documented so your customer is not charged a surtax that does not apply.
- 3Ask Canadian customers about remission
Inputs for manufacturing, processing, agriculture and food packaging may qualify. The importer in Canada makes the claim, so raise it before they re-source.
- 4Decide who carries the surtax
Review Incoterms on Canadian contracts. On DDP terms the surtax is yours; on FCA or FOB terms it is your customer's and shows up as lost orders instead.
- 5Consider shipping direct from the factory
For goods made in Asia or Mexico, a direct shipment to Canada avoids both the U.S. entry and any question over origin.
Sources
- List of products from the United States subject to counter-tariffs effective September 8, 2026 · Department of Finance Canada · August 26, 2026
- Canada's retaliatory tariffs worth CA$27.6 billion take effect as trade rift with U.S. deepens · CNBC · September 8, 2026
- Elbows back up: U.S. section 338 tariffs, Canada's retaliatory surtaxes and the current tariff landscape · Osler, Hoskin & Harcourt · August 26, 2026
- Canada Sets Retaliatory Tariffs to U.S. Section 338 Tariffs · Shapiro · September 9, 2026
We summarize published reporting and official notices. Always confirm rates and dates against the Federal Register or your customs broker before acting on them.