Thompson Hine | United States Implements 50% Tariffs on Canada; Canada Responds with Matching Retaliatory Tariffs

On August 21, 2026, trade negotiations between the United States and Canada faltered and the parties, for now, have ceased further negotiations. As a result, the United States has implemented 50% tariffs on a broad range of Canadian products under Section 338 of the Tariff Act of 1930. First announced on July 20, 2026 (see SmarTrade update of July 21, 2026), when President Donald Trump signed three Presidential Proclamations imposing these additional, implementation of these tariffs was delayed until August 22, 2026. Accordingly, U.S. Customs and Border Protection (CBP) has issued a Cargo Systems Messaging Service (CSMS) message providing guidance and instructions for importers, brokers, and filers on filing entries on certain imports from Canada entered for consumption, or withdrawn from warehouse for consumption, as of August 22, 2026. This message includes a final list of Harmonized Tariff Schedule of the United States (HTSUS) list of all subheadings impacted by these Section 338 tariffs. The tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA).

On August 25, 2026, Canada responded by announcing that on September 8, 2026, it “will impose counter-tariffs of 15, 25 and 50 per cent on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with the rate for each product matching the corresponding U.S. rate.” These tariffs will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The announcement includes a list of the products and their Harmonized (HS) subheadings covered by these retaliatory tariffs. Canada’s countermeasures do not apply to U.S. goods that are in transit to Canada on the day on which they come into force. 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).

Compliments of Thompson Hine – a member of the EACCNY