Following the abrupt end of trade talks last week, the Trump administration put into effect a 50% tariff on a range of Canadian exports, estimated to be worth C$27.6 billion. Among the Canadian goods targeted are motor vehicles, alcohol, dairy and other products. In response to President Trump’s imposition of 50% tariffs, Prime Minister Carney has announced countermeasures targeting the United States.
Canada's Counter Tariffs
Tariff targets and rates: Tariffs (surtaxes) on C$27.6 billion worth of American goods, which vary between 15%, 25% and 50%, depending on the product.
Effective date: These countermeasures will take effect as of 12:01 a.m., September 8, 2026.
Scope of tariffs: The announced tariffs include a variety of products, including but not limited to, steel and aluminum products, dairy products, cosmetics, certain lumber products, certain paper products, furniture, apparel, tools, network equipment and certain motor vehicles and parts. In addition:
- 50% surtaxes will apply to dairy products, cosmetics, lumber; and
- previous surtaxes of 25% on steel and aluminum will be increased to 50%.
Criteria: The surtax will apply to US-origin goods, determined using the marking rules set out in the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
The Department of Finance Canada has made available the full list of tariff codes that will be subject to surtaxes as of Tuesday, September 8.
Additional Countermeasures
In addition to a "dollar-for-dollar" approach to tariffs on US goods, the Government of Canada will include relief measures and support for those hit hardest by the tariffs.
Surtax remissions: Canada's tariff remission framework remains available to assess requests for exceptional relief. Existing remissions for steel and aluminum will automatically carry over to the new, higher tariff rates. Imports of goods subject to the counter tariffs will be eligible for certain horizontal remissions under the United States Surtax Remission Order (2025) until June 30, 2027:
- Goods for use by public health, health care, public safety and national security entities;
- steel goods for use in auto and aerospace manufacturing; and
- goods for use in manufacturing, processing, food and beverage packaging and agricultural production in Canada.
Duties relief: In addition to remission, importers may also be eligible for surtax relief on re-exported goods, through the Import for Re-export Program, Duties Relief or Duty Drawback Programs
Additional federal measures: On August 25, Finance Minister Champagne announced C$7.5 billion in tariff support for workers and businesses impacted by the 50% US tariffs that President Trump imposed last Friday. C$3.5 billion of the C$7.5 billion support funding will be directed into a rapid response initiative for workers and employees, which will expand changes to Employment Insurance meant to support workers who have lost their jobs due to tariffs. The federal Government will also invest C$2 billion to create the "Canada Strong Diversification Fund."
This fund will assist tariff-impacted companies with "shovel-ready" projects, which will support medium-sized companies with ongoing capital maintenance. For larger companies, changes will be made to the Large Enterprise Tariff Loan (LETL) facility to support any impacts caused by the US tariffs and Canadian countermeasures. These changes will extend the financial liquidity support period offered by the LETL from 24 months to 36 months, and extend the maximum loan repayment period from 10 years to 15 years. A full list of support programs was announced here.
What Comes Next
The Order in Council implementing the latest round of retaliatory tariffs, along with accompanying guidance in the form of a Customs Notice, is expected to be published in the coming days. Details of Canada's response to the Trump administration's latest round of tariffs continue to unfold. Provincial governments have not yet announced additional independent or coordinated retaliatory measures related to matters within provincial jurisdiction.
Businesses should carefully assess whether their goods or supply chains are impacted by this latest round of tariffs and countermeasures, factoring in the risk of further escalation. For those businesses impacted by tariffs and considering an application for remission, it is important to consider early on whether substitute goods are produced and are available in Canada or from alternative foreign sources.
If you have any questions regarding content discussed, please contact any of the authors, or a member of the Bennett Jones International Trade and Investment or Public Policy groups.
