Background

The Canadian government has announced its plans for retaliation for the 50 percent Section 338 tariff the U.S. imposed on $20 billion worth of imports from Canada as of Aug. 22.

According to a press release from Canada’s Department of Finance, Canada will impose counter-tariffs of 15, 25, or 50 percent on hundreds of products drawn from those targeted by U.S. Section 338 and Section 232 tariffs (click here for full list).

- goods subject to 50 percent tariffs include steel and aluminum products that were previously only subject to a 25 percent counter-tariff, furniture, and clothing and apparel

- goods subject to 25 percent tariffs include appliances, dairy products, fish and seafood, and certain steel and aluminum derivative products

- other existing counter-tariffs against the U.S., including autos, remain in place

These tariffs will be effective as of 12:01 a.m. on Sept. 8 but will not apply to affected goods that are in transit to Canada on that day.

In addition, the tariffs only apply to goods originating from the U.S.; i.e., those eligible to be marked as a good of the U.S. in accordance with applicable Canadian origin regulations.

The U.S. is thought likely to respond to the Canadian retaliatory tariffs, though further details are not yet available. President Trump has reportedly threatened to double tariffs on imports of Canadian cars, trucks, and auto parts to 50 percent beginning Jan. 1, 2027.

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