By OptiVal Editorial Desk
If you import goods from the United States, your cost structure changed this month. On August 22, 2026, the US imposed a 50% tariff on a broad package of Canadian-origin goods under Section 338 of the Tariff Act of 1930, after bilateral trade negotiations were suspended. Canada answered dollar for dollar: new Canada counter-tariffs took effect at 12:01 a.m. on September 8, 2026, applying 15%, 25% or 50% to roughly 629 US tariff items covering about $27.6 billion in annual imports. If you move goods across the border, this is the part of the trade war that lands on your purchase invoices. Here is what is in force, which products are hit, and the relief routes that actually exist.
What is in force right now
There are two layers to keep straight, because they hit different sides of your business.
On the US side, the 50% Section 338 tariffs took effect on August 22, 2026. They apply to a broad range of Canadian-origin goods and, importantly, they apply regardless of whether those goods would otherwise qualify for preferential treatment under CUSMA. So if you sell into the US market, your products may be carrying a 50% duty even with a valid CUSMA claim.
On the Canadian side, the government announced its response on August 25, 2026: counter-tariffs of 15%, 25% and 50% on approximately 629 tariff items, representing about $27.6 billion in annual imports from the United States. They took effect at 12:01 a.m. ET on September 8, 2026. Ottawa framed the measures explicitly as dollar-for-dollar, rate-for-rate retaliation for the US Section 338 and Section 232 tariffs.
Earlier Canadian countermeasures are still in force on top of the new ones. The 25% counter-tariffs on US-origin vehicles, automotive products, and raw iron and steel that have applied since September 1, 2025 remain active. Some primary steel and aluminum lines that carried the 25% surtax have moved up to 50% under the new package. Do not assume the September 8 list replaced everything; it stacked on top.
How the Canada counter-tariffs work
The rate on each product mirrors the US duty rate on the equivalent Canadian good. That is what “rate-for-rate” means: the tariff band your product falls into depends on what Washington is charging on comparable Canadian exports.
Three rules decide whether you are actually exposed:
- US origin only. The measures apply only to goods that qualify as US-origin under Canada’s country-of-origin marking rules for CUSMA countries. A foreign-made product sitting in a US warehouse does not become a US good just because it shipped from there. Get the origin determination right before you panic about a rate.
- In-transit exemption. Goods that were already in transit to Canada on September 8 are not subject to the new counter-tariffs. If you rely on this, document it: bills of lading and shipping records are your proof.
- Check the classification, not the category. Exposure is decided at the 10-digit tariff classification level, matched against the Department of Finance’s published product list. Broad sector names like “appliances” or “electronics” will mislead you in both directions. The Finance list is the definitive reference, and it has already been revised once since the announcement, so work from the current version and watch CBSA customs notices for how each round is administered.
Which products are affected
The sectors on the September 8 list include steel and aluminum products (and derivatives), dairy products including cheese, fish and seafood, appliances, agricultural equipment, pulp and paper products, furniture, clothing and apparel, electronics, cosmetics, plastics, and tools. Some individual items sit in the 50% band, including selected steel and aluminum lines, and certain furniture and apparel products.
That list covers what Canadians actually import in volume, so the odds that at least one line on your purchasing report is affected are high. Pull your last few months of customs entries and match each tariff item against the list. It is tedious, and it is the only way to know your real exposure.
What this does to your costs
The practical effect is a sudden change in landed cost. A product that crossed the border with no surtax on September 7 can carry up to 50% on September 8. If your pricing assumed stable import costs, that assumption is now stale.
A few things owners often get wrong here. First, the tariff applies to the customs value of the goods, not the final retail price. A 25% counter-tariff does not automatically mean prices rise 25%. On a $10,000 shipment at the 25% rate, you pay $2,500 in additional duty at the border, and GST or HST is then charged on the duty-paid value when the goods clear customs. Registered businesses generally recover that GST or HST through input tax credits, but the duty itself is a real cost.
Second, whether your customers feel it depends on what you do next. Some businesses absorb the cost to protect market share, some pass it through, and most land somewhere in between, renegotiating with suppliers or shifting volumes. Sourcing the same inputs from a non-US supplier avoids the surtax entirely, but factor in the switching costs and confirm the origin rules on the new supply chain. Already-landed stock is outside the measures, which makes the timing of your next shipment a genuine financial decision, not just a logistics one.
Duty remission: how to get relief
Remission is the government’s exception process: relief from tariffs that would otherwise apply. It exists, it is narrow, and it works differently depending on your situation.
Relief that is already in place. Product- and company-specific remission granted under the United States Surtax Remission Order (2025) now extends to the new counter-tariffs. Importers claim it by entering the relevant special authorization code in the Special Authority OIC field of the Commercial Accounting Declaration, so the surtax is remitted rather than paid and refunded. If the code was missed on a declaration, it can usually be corrected before payment is due or recovered through a refund afterward, but confirm the mechanics with your customs broker before relying on that.
Horizontal relief until June 30, 2027. Broad remission remains available for goods used by public health, public safety and national security entities, for steel goods used in auto and aerospace manufacturing, and for non-steel goods used in manufacturing, processing, food and beverage packaging, and agricultural production in Canada.
New requests to the Department of Finance. For goods not covered above, Finance continues to accept remission requests where the inputs cannot be sourced domestically or reasonably from non-US suppliers, or where exceptional circumstances could have severe adverse impacts on the Canadian economy. Requests go to remissions-remises@fin.gc.ca with “U.S. Remission” in the subject line, and only companies registered in Canada are eligible. Be clear-eyed about this route: Finance assesses each request with other federal departments, may consult domestic producers, and relief requires a recommendation from the Minister of Finance plus an Order in Council. It is a genuine avenue, not a quick one.
Re-exporters have separate options. If the goods are coming in only to go back out, look at the Import for Re-export Program, the Duties Relief Program, and the Duty Drawback Program before paying anything you do not owe.
Start with the official process page: Process for requesting remission of tariffs that apply on certain goods from the U.S. (Department of Finance Canada).
The bookkeeping side of tariffs
Tariffs are not just a customs problem; they change your books, and sloppy recording here costs you twice: once in bad pricing decisions, and again if you ever need to support a remission or refund claim.
Duties on imported inventory generally form part of the inventory’s landed cost. That means they are capitalized into inventory and recognized through cost of goods sold when the goods sell, not expensed as a separate line the day the shipment clears. (Confirm the exact treatment with your accountant for your situation, but do not park duties in a generic expense account and forget about them.) Keep your customs broker’s service fees separate from the duties themselves: one is a professional fee, the other is part of what the goods cost you.
Track duty paid per shipment. You will need those figures for remission claims, for refund applications, for repricing decisions, and for your CRA records. USD-denominated supplier invoices add foreign exchange differences on top, which are a separate line from the tariff cost. And keep your in-transit documentation and tariff classification decisions in the file: if a rate is ever questioned, the paper trail is the whole argument.
A practical checklist for importers
- Pull your 10-digit tariff items and match each one against the current Department of Finance product list.
- Confirm US origin under the CUSMA marking rules for every exposed line.
- Document in-transit status for any shipment that was moving on September 8, with bills of lading.
- Talk to your customs broker before you reprice anything; they administer these measures daily.
- Check your remission position: existing authorization codes, horizontal relief to June 30, 2027, and whether a Finance request is worth making.
- Review margins, supplier contracts, and shipment timing with the new landed costs.
- Price at least one non-US sourcing option for your highest-exposure inputs.
- Keep every document. Tariff disputes are won on paperwork.
This article is general information, not customs or legal advice. Tariff rules are moving quickly; confirm your situation with a licensed customs broker.
Not sure which programs you qualify for? Tariff-hit businesses can also tap government support: the August 25 package included support measures for workers and businesses in exposed sectors, and programs like the Regional Tariff Response Initiative were built for exactly this moment. We help small businesses find funding and prepare applications. Book a free consultation. And if the numbers get complicated, our team can model the tariff impact on your margins (consulting from $125/hr).
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