Canada is set to introduce a new round of retaliatory tariffs on U.S. goods. On August 25, local time, the Canadian government announced that selected imports from the United States would be subject to additional tariffs of 15%, 25%, or 50%. The measures will cover approximately CAD 27 billion, or about USD 20 billion, in U.S. goods and will take effect at 12:01 a.m. local time on September 8.

The measures are Canada’s matching retaliatory response to the United States’ recent imposition of 50% tariffs on Canadian goods. For shipments involved in U.S.–Canada trade, the key questions are not whether all U.S. goods will be subject to additional tariffs, but whether a specific product appears on the tariff list, which rate applies, and the shipment’s status when the measures take effect on September 8.

Key Highlights 

• Affected trade value: Canada will impose retaliatory tariffs on approximately CAD 27 billion, or about USD 20 billion, in U.S. goods. 

• Tariff rates: Additional tariffs of 15%, 25%, or 50% will apply according to each product’s HS tariff classification. 

• Effective date: The new measures will take effect at 12:01 a.m. local time on September 8. 

• In-transit exemption: U.S.-origin goods already in transit to Canada when the measures take effect will be exempt from the additional tariffs.

Which U.S. Goods Will Be Affected by Tariffs of Up to 50%?

Canada’s retaliatory tariffs cover approximately 700 U.S. product lines across several major product groups. These include steel, aluminum products, dairy products, home appliances, agricultural equipment, pulp and paper products, plastics, and electronics. Different tariff rates will apply to different products. According to the list published by the Department of Finance Canada, most U.S. steel and aluminum products will be subject to the highest rate of 50%. Dairy products and selected steel and aluminum derivatives will be subject to a 25% tariff, while the remaining listed products will face a 15% tariff.

The measures do not impose a uniform 50% tariff on all imports from the United States. Tariffs will be assessed according to the applicable HS tariff lines. In practice, the rate cannot be determined solely by whether the goods were shipped from the United States. The product’s country of origin and exact HS code must be checked against the official list to confirm the applicable rate and avoid incorrect duty calculations. The value and scope of Canada’s additional tariffs broadly match those of the earlier U.S. measures and represent a targeted trade response.

Measures Take Effect on September 8, with In-Transit Goods Exempt

The retaliatory tariffs will take effect at 12:01 a.m. local time on September 8. Their application will depend primarily on the time of importation, whether the goods are already in transit, and their country of origin. The Canadian government has stated that the new measures apply only to U.S.-origin goods imported after the effective time.

The government has also clarified the exemption of greatest operational relevance to freight forwarders and importers and exporters. U.S.-origin goods already in transit to Canada before the measures take effect on September 8 will not be subject to the new retaliatory tariffs and may clear customs under the previous tariff rules.

Shipments on U.S.–Canada trade lanes should therefore be handled according to their status. For cargo already in transit, companies should check shipping records and estimated arrival times to confirm eligibility for the exemption. For cargo not yet shipped, duties should be recalculated under the new rules, quotations should be updated, and overseas customers should be informed of cost changes in advance to avoid customs clearance disputes or disagreements over charges.

How to Determine Tariff Treatment After September 8

Once the new measures take effect, tariff treatment for U.S.–Canada shipments should be determined using three criteria. The first is the actual country of origin. The retaliatory tariffs apply only to U.S.-origin goods. Goods merely transshipped through the United States but originating in a third country will not be subject to the additional tariffs, provided their origin can be supported by appropriate documentation.

The second is the product’s HS code and corresponding tariff rate. Companies should check the Department of Finance Canada list covering more than 700 product lines to determine whether the 15%, 25%, or 50% rate applies and calculate import costs accordingly. This will help avoid overpayment or underpayment of duties. The third criterion is the time of importation. Shipments imported before and after September 8 should be distinguished based on their in-transit status and declaration time.

U.S.–Canada trade tensions remain subject to further developments, and the scope of affected products or applicable rates could change. Freight forwarders and importers and exporters with regular U.S.–Canada shipments should verify the HS code, country of origin, estimated import date, and in-transit status of each shipment. Shipment schedules and customs clearance arrangements should be planned in advance to reduce supply chain risks arising from policy changes.

Sources and Disclaimer 

This article is based on information from the Department of Finance Canada, Reuters, CCTV.com, and other publicly available industry sources. It is provided solely for reference by the international logistics and freight forwarding industry. Specific implementation remains subject to the latest policies issued by Canadian customs and the relevant authorities.