TRADE ALERT – IMPORTS
HEADLINE	Canada Implements Counter Tariffs in Response to Section 338 Tariffs
DATE	September 9, 2026
AGENCY	Department of Finance Canada
EFFECTIVE DATE	September 8, 2026, 12:01 a.m.
BACKGROUND	On July 20, 2026, President Trump issued three Proclamations under Section 338 to impose an additional 50% tariff on certain Canadian products in retaliation for restrictions on the sale of U.S. alcohol, and imports of U.S. automobiles and dairy products. These tariffs apply to all covered goods, regardless of whether the good qualifies for preferential treatment under USMCA. After a short delay, these tariffs became effective on August 22, 2026.   Following the imposition of these tariffs, Canada announced retaliatory tariffs on Canada on August 25, 2026. On August 25, 2026, Canada announced tariffs of 15%, 25% and 50% in retaliation for the imposition of the Section 338 tariffs. These tariffs are intended to match the Section 338 tariffs “dollar for dollar” and draw from the list of Canadian goods subject to either Section 232 or 338 tariffs.
DETAILS	These Canadian counter tariffs will focus on steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. These will cover C$27.6 billion in imports from the U.S. that are most impacted by U.S. tariffs. Notable products subject to the retaliatory tariffs include: • Steel and aluminum products • Dairy products • Network switching and routing equipment • Insulated conductors • Construction machinery parts • Pump parts • Corrugated paperboard/boxes • Facial tissues and towels • Compressors pumps and fans • Polyethylene sacks and bags • Road tractor/freight trailers • Harvest machinery parts.   The tariffs do not apply to U.S. goods that are in transit to Canada on the day on which they come into force (September 8). Additional details on the administration of these tariffs will be available on the Canada Border Services Agency website at: Customs Notices (cbsa-asfc.gc.ca).   President Trump has threatened to increase tariffs from 25% to 50% on Canadian cars and auto parts in response to the counter tariffs, starting January 1, 2027.
BASIS	Trade Act of 1930 (Section 338), 19 U.S.C. § 1338
HTS/  PRODUCTS	All products defined except for specified articles and those articles subject to Section 232 tariffs (including steel, aluminum and coper and their derivatives, autos, medium and heavy-duty trucks, wood products, and semiconductors)
COUNTRY	Canada; United States
CITE	Government of Canada, List of products from the United States subject to counter-tariffs effective September 8, 2026 – Canada.ca   White House: Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles – The White House • ANNEX I • ANNEX II   White House: Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages – The White House • ANNEX I • ANNEX II   White House: Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy – The White House • ANNEX I • ANNEX II

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