Tariffs in Canada: What’s the Latest?
September 8, 2026 was a whirlwind day for the Canada-U.S. trade war.
It started with the Government of Canada launching a new round of dollar-for-dollar counter-tariffs in response to the 50% levies Trump imposed on $27.6 billion of Canadian goods on August 22.
Canada’s new tariffs range from 15% to 50% and affect selected goods originating in the U.S., such as:
Dairy products (25%-50%).
Beauty products (hair, makeup and nails) (50%).
Items made of wood, paper, wool, textiles, steel and aluminum (25%-50%).
Clothing (50%).
Knives and other metal kitchenware (25%).
Washers and dryers (25%).
Ovens, stoves and ranges (25%).
Exercise equipment, gaming consoles, golf equipment (50%).
By mid-day, Trump responded by announcing a flurry of new trade barriers. Import bans on Canadian whey, molasses, certain motorcycles and various alcoholic beverages are scheduled to take effect on September 29. Certain Canadian cheeses, animal skins and motorboats will be subject to additional 50% tariffs as of September 15.
Whereas Trump’s tariffs and bans will hurt Canadian producers and U.S. consumers, it’s Canadian shoppers who will be on the hook for Canada’s new counter-tariffs..
In a scenario with more rational actors, none of these measures would be in effect long enough to inflict lasting harm on consumers or businesses on either side of the border. They would be inducements for getting the U.S. and Canada back to the bargaining table.
But the relationship between the two countries has frayed to a point that is as unprecedented as it is bewildering. If Trump views Canada’s self-defense as aggression, which has now happened twice, it’s hard to see the situation unwinding from its current doom loop trajectory. Would a Democratic takeover of Congress after the U.S. midterms curb the president’s vitriol? Not likely.
For now, expect prices and tensions to rise.
What are these new Canadian tariffs a response to?
Trump’s last set of levies covered over 500 tariff lines and C$27.6 billion in Canadian exports. That’s roughly 5% of the goods the U.S. imports from Canada.
The tariffs apply to goods including:
Wine.
Cheese.
Plywood.
Furniture.
Clothing.
Fishing rods.
Hockey sticks.
The White House said the tariffs reflect Canada’s “discriminatory treatment of U.S. commerce,” particularly in its dairy, alcohol and automotive sectors.
Section 338 of the Tariff Act of 1930 allows the president to implement additional tariffs of up to 50% to offset another country’s discrimination against or unequal treatment of U.S. commerce. Section 338 tariffs apply regardless of whether a good originates under the Canada-United States-Mexico Agreement (CUSMA).,
The U.S. argument is that Canada’s tariffs on U.S. automobiles and restrictions on American alcohol are discriminatory because other countries do not receive similar treatment. Missing from this calculation, however, is that both measures came as retaliation against Trump’s initial wave of tariffs.
Trump's gripe about dairy is a bit complicated. Canada's tariff-rate quotas for U.S. cheese are more restrictive than the quotas it grants European cheese, for example. Canada's broader supply-management system can also trigger tariffs of 200% or more on imports above set thresholds.
In addition to the August 22 tariffs, Trump has since threatened to set tariffs on all Canadian cars, trucks and automotive parts at 50% beginning January 1, 2027. That increase has not been formally implemented. His post also named steel, although Canadian steel already faces a 50% U.S. tariff.
A tariff timeline
September 8, 2026: Trump responds to Canada’s counter-tariffs by announcing import bans affecting some Canadian whey, motorcycles and alcoholic beverages (effective September 29), and new tariffs on various cheeses, animal skins and boats (effective September 15).
September 8, 2026: Canada implements counter-tariffs on $27.6 billion of U.S. imports, covering 629 tariff items.
August 25, 2026: Canada announces counter-tariffs of 15%, 25% and 50% on C$27.6 billion of U.S. imports, effective September 8, along with C$7.5 billion in new and expanded support for affected workers and businesses.
August 24, 2026: Trump threatens to set tariffs on all Canadian cars, trucks and automotive parts at 50% beginning January 1, 2027. His post also names steel, which already faces a 50% U.S. tariff.
August 22, 2026: U.S. tariffs of 50% take effect on more than 500 tariff lines covering Canadian goods after a three-day delay.
August 21, 2026: Carney suspends trade negotiations (statement 11:26 p.m. ET), hours before the U.S. tariffs took effect.
August 18, 2026: Trump postpones the tariffs’ effective date from August 19 to August 22 while negotiations continue.
July 24, 2026: The temporary Section 122 import surcharge expires after its 150-day limit. The same day, new Section 301 tariffs tied to forced-labour enforcement take effect, including a 10% tariff on most Canadian goods. CUSMA-compliant goods are exempt, as are Section 232 goods and certain other products.
July 20, 2026: The White House announces 50% tariffs on over 500 tariff lines covering Canadian goods in response to Canada’s “discriminatory” treatment of U.S. automobiles, alcohol and dairy, initially scheduled to take effect August 19.
July 1, 2026: In CUSMA's first six-year joint review, the U.S. declines to extend the agreement for another 16-year term. CUSMA remains in force until 2036, but the parties must now review it annually.
Tap for earlier events in the Canada-US trade dispute
June 8, 2026: The U.S. adjusts its metals tariffs, cutting rates on some agricultural and HVAC equipment to 15% and easing the U.S.-content threshold for preferential treatment.
May 7, 2026: The U.S. Court of International Trade rules the Section 122 surcharge unlawful, but the injunction covers only the plaintiffs. An appeals court stays the ruling days later, and collection continues.
April 6, 2026: U.S. tariffs on steel, aluminum, copper and their derivatives begin applying to the full value of covered goods rather than only their metal content.
February 24, 2026: A temporary 10% import surcharge takes effect at 12:01 a.m. EST. CUSMA-qualifying Canadian goods and several other product groups are exempt.
February 21, 2026: Trump says in a Truth Social post that he plans to raise the new surcharge from 10% to 15% — the statutory maximum under Section 122. The increase is never formally implemented.
February 20, 2026: The U.S. Supreme Court rules 6-3 that the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs, invalidating both the border/fentanyl tariffs on Canada and the global “reciprocal” tariffs. Section 232 tariffs on steel, aluminum, autos, copper, lumber and other goods are unaffected.
February 20, 2026: Trump announces a temporary 10% global import surcharge under Section 122 of the Trade Act of 1974, effective February 24 for up to 150 days.
December 26, 2025: Canada's 25% tariffs on select “steel-derivative” products from all countries take effect, alongside tighter steel tariff-rate quotas.
October 25, 2025: Trump announces an additional 10% tariff on Canadian goods in a social media post, but no formal measure follows.
October 23, 2025: Trump halts Canada-U.S. trade negotiations over an Ontario government anti-tariff ad.
October 14, 2025: U.S. tariffs take effect on softwood timber and lumber (10%) and on certain upholstered wooden furniture, kitchen cabinets and vanities (25%). There is no CUSMA exemption, so Canadian products are hit. Scheduled increases to 30% (furniture) and 50% (cabinets and vanities) were postponed to January 1, 2027.
September 1, 2025: Canada removes the counter-tariffs imposed in March 2025 on most U.S. imports. Canada's tariffs on steel, aluminum and automobiles remain in place.
August 29, 2025: The U.S. suspends duty-free de minimis treatment for shipments valued at US$800 or less, from all countries.
August 22, 2025: Prime Minister Carney announces that Canada will remove retaliatory tariffs on CUSMA-compliant goods on September 1. Tariffs on U.S. steel, aluminum and vehicles will remain in place.
August 1, 2025: The new 35% U.S. tariff rate takes effect on Canadian goods that do not qualify for CUSMA preferences.
July 31, 2025: Trump signs an order raising the tariff on non-CUSMA Canadian goods from 25% to 35%, effective August 1.
July 10, 2025: Trump announces a planned 35% tariff on Canadian goods beginning August 1; CUSMA-qualifying goods are expected to remain exempt.
June 29, 2025: Canada announces that it will rescind the Digital Services Tax (DST) so that trade talks between the U.S. and Canada could continue.
June 27, 2025: Trump halts all trade talks with Canada and warnswarned of additional tariffs if the Digital Services Tax is levied against large U.S. tech companies, as planned.
June 4, 2025: Trump’s new steel and aluminum tariffs go into effect.
June 3, 2025: Trump announces a doubling of steel and aluminum tariffs to 50%.
May 29, 2025: An appeals court allows the tariffs to remain in place while the government appeals.
May 28, 2025: The U.S. Court of International Trade blocks some Trump tariffs, citing misapplication of the 1977 International Emergency Economic Powers Act.
May 12, 2025: The U.S. and China agree to a 90-day "truce" in their trade war.
May 3, 2025: A 25% U.S. tariff on certain automobile parts goes into effect.
April 29, 2025: Trump signs orders that create temporary tariff offsets for automakers assembling vehicles in the U.S. and limit the stacking of certain tariffs.
April 5, 2025: Trump’s 10% minimum tariff on nearly all countries and territories takes effect; Canada and Mexico are excluded.
April 3, 2025: Prime Minister Carney announces 25% counter-tariffs on non-CUSMA-compliant U.S.-made vehicles and on the non-Canadian and non-Mexican content of CUSMA-compliant U.S.-made vehicles, effective April 9. Vehicle parts are exempt.
April 3, 2025: A 25% U.S. tariff takes effect on imported automobiles. For CUSMA-compliant vehicles, the tariff applies only to the value of their non-U.S. content.
April 2, 2025: Trump announces broad “reciprocal” tariffs, but Canada and Mexico are excluded.; CUSMA-qualifying goods remain exempt from the IEEPA border tariffs.
March 12, 2025: U.S. steel and aluminum tariffs take effect. Canada announces C$29.8 billion in counter-tariffs, effective March 13.
March 10, 2025: Ontario announces a 25% surcharge on electricity exported to several U.S. states. The surcharge is suspended the following day after Premier Doug Ford secures a meeting with White House officials.
March 6, 2025: Trump exempts CUSMA-qualifying Canadian goods from the IEEPA tariffs and lowers the tariff on non-CUSMA potash to 10%.
March 5, 2025: Trump orders a one-month tariff exemption for CUSMA-compliant vehicles from Canada and Mexico.
March 4, 2025: Trump implements 25% tariffs on most Canadian goods and a 10% tariff on Canadian energy exports. Canada responds with 25% tariffs on C$30 billion worth of U.S. goods.
February 3, 2025: The U.S. and Canadian governments announce a 30-day suspension of the tariffs. Canada pledges to strengthen border security, including by continuing to implement its C$1.3-billion border plan.
February 2, 2025: Prime Minister Justin Trudeau announces that Canada will impose 25% tariffs on C$30 billion worth of U.S. goods beginning February 4. Tariffs on another C$125 billion in U.S. goods are planned for three weeks later. (That second phase is never enacted.)
February 1, 2025: U.S. President Donald Trump issues an executive order imposing 25% tariffs on goods imported from Canada. Energy resources will be subject to 10% tariffs. The tariffs are scheduled to take effect February 4.
Why is the U.S. imposing tariffs on Canada?
A country may put tariffs into place for a variety of reasons, such as:
Increasing national revenue through import taxes.
Reducing perceived dependence by limiting the consumption of foreign goods.
Protecting domestic companies and jobs by making foreign goods more expensive.
Applying economic pressure on a trading partner.
Trump's earlier justification for the tariffs on Canada mostly focused on the “flow” of fentanyl and undocumented immigrants into the U.S. — claims with little statistical basis that proved somewhat useful as a bargaining chip. Those tariffs were struck down by the Supreme Court in February 2026.
The tariffs that took effect on August 22, 2026, cite something different: Canada's allegedly discriminatory treatment of U.S. commerce.
» Learn some survival strategies for times of high inflation
Canada's previous retaliatory tariffs
Canada actually levied a stricter set of counter-tariffs against the U.S. that lasted from March 2025 until September 1 of that year. Before they were rescinded, they covered roughly $44 billion in U.S. imports, including:
Fridges and washing machines.
Peanut butter, canned soup and other groceries.
Clothing and footwear.
Building and renovation materials, like windows, flooring and shingles.
Those tariffs were meant to grease the wheels of upcoming trade negotiations between the two countries, which didn’t exactly pan out.
How could these tariffs affect you?
Whatever the intention, tariffs often have negative consequences for consumers — in both countries involved.
The potential effects of Trump’s tariffs on Canada include:
Higher prices. Businesses may pass some tariff costs to customers, while a shift in demand toward locally produced goods could put pressure on domestic supplies. Canada’s counter-tariffs could also make affected U.S. imports more expensive after September 8. A 25% tariff won’t necessarily produce a 25% increase at the cash register — importers may absorb some of the cost or switch suppliers — but it increases the risk of higher prices.
Job losses in industries that depend on exports. Producers of food, wood, paper, electronics and other targeted goods face a higher risk of lost sales. Trump’s threatened increase to 50% on Canadian vehicles and auto parts would add to that risk if it takes effect January 1.
Global supply chain disruption. If U.S. importers turn to non-Canadian countries for their goods, that increased demand could hamper production capacity and put pressure on shipping routes.
The two countries traded an estimated US$872.3 billion in goods and services in 2025, according to the Office of the U.S. Trade Representative — nearly US$2.4 billion a day, and down 4.6% from 2024.
A sustained drop in U.S. demand for Canadian exports could weigh on economic growth and increase the risk of a deeper downturn.
» Be prepared: 3 ways to spend less on food
Tariff basics you should know
At their simplest, tariffs are taxes applied to goods that are imported from a foreign country. Tariffs aren’t new; in fact, nearly all developed countries impose some kind of tariff.
There are a few main types:
Ad valorem: A percentage-based tariff applied to an item’s value (10% of a car’s price, for example).
Specific: A fixed amount per unit, regardless of the item’s price (such as, $5 per kilogram of imported cheese).
Tariff-rate quota: Lower tariffs that apply up to a certain import limit and then trigger an increase after the quota is exceeded.
Blanket tariffs: An informal term for a single tariff rate that applies broadly to imported goods from a specific country, regardless of the product type or value (such as “25% on all Canadian goods”).
Who pays tariffs?
Tariffs are paid by the companies who import foreign goods — not the exporting countries.
U.S. importers pay U.S. tariffs when covered Canadian goods enter the country. Canadian importers pay Canada’s counter-tariffs on covered U.S. goods, including the measures effective as of September 8, 2026.
Companies often raise their prices to offset the cost of tariffs. In these cases, consumers might wind up “paying for” the tariffs, but they don’t literally pay the tariffs themselves.
This story will be updated as events progress.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Georgia State University. Are tariffs good or bad for the economy? Research says they can be bad for the supply chain. Accessed Jan 30, 2025.
- Council on Foreign Relations. What Are Tariffs?. Accessed Jan 30, 2025.
- PBS. Trump favors huge new tariffs. How do they work?. Accessed Jan 30, 2025.
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