As of September 8, 2026, Canada added new tariffs of 15%, 25%, and 50% on nearly 900 unique products, after trade talks between the two countries fell apart on August 22. Apparel, textiles, footwear, electronics, and steel/aluminum products make up the biggest chunk of what’s affected.
Key impacts for U.S. ecommerce brands:
- 15%-50% tariff (duty) on certain US origin goods
- U.S. origin means goods obtained or produced in the US, regardless of where the goods are shipped from
- Only applies to goods under these Harmonized System (HS) tariff classifications
- Key consumer goods categories potentially impacted: Clothing & apparel; textiles, footwear & headgear; leather goods & accessories; sporting equipment; electronics; and appliances
- The $150 CAD duty de minimis does not apply to these tariffs
Why did U.S.-Canada trade talks collapse on August 22, 2026?
To understand where things stand, it helps to back up a few days. On August 22, new U.S. tariffs of up to 50% on a wide range of Canadian goods took effect, after a weekend of trade talks between the two countries fell through. Prime Minister Mark Carney summed it up simply: the U.S. had “asked too much, offered too little.”
One detail worth knowing: these U.S. tariffs don’t make an exception for goods that would normally qualify for USMCA/CUSMA treatment, which is a change from how past tariff rounds worked. Canada’s response, covered next, followed just three days later.
So what did Canada actually announce?
On August 25, 2026, Canada’s Department of Finance hit back with its own tariffs, covering about C$27.6 billion (US$19.94 billion) worth of American goods. The idea, as the government put it, is to match the U.S. “dollar for dollar, rate for rate.” You may see this described in the news as touching around 700 product sectors — the government’s actual line-item list works out to nearly 900 specific tariff items. AP has more on how quickly this all unfolded.
When do these new tariffs kick in?
Tariffs kicked in September 8, 2026. That’s separate from Canada’s earlier counter-tariffs on U.S. steel, aluminum, and autos, which had been running since September 2025 and remained in place right up through September 7 — the day before this new round began.
What kinds of products are we talking about?
Canada’s Finance Minister confirmed the rate for each product matches the corresponding U.S. tariff rate on that same good. The full list covers nearly 900 tariff items split across three rate tiers:
Is this different from the steel and aluminum tariffs Canada already had?
Yes. Think of it as an additional list, not a replacement. Canada’s existing counter-tariffs on U.S. steel, aluminum, and autos had been in place since September 1, 2025, and remained in place through September 7, 2026. The new list that began September 8 sat alongside that one. So if you sold steel products into Canada, it was worth checking both lists for your specific item, rather than assuming the new one simply took over.
Does having USMCA/CUSMA status protect me?
Unfortunately, no. Neither the U.S. tariffs from August 22 nor Canada’s new tariffs make an exception for goods that qualify under USMCA/CUSMA. That’s a real shift from how earlier tariff programs worked, so it’s worth double-checking rather than assuming your usual trade agreement paperwork will shield you here.
How is the surtax actually calculated?
CBSA published its official guidance on September 7, 2026, in Customs Notice 26-23, which confirms how the surtax is assessed at the border. Here’s the key point for sellers: the surtax is calculated on the value for duty (VFD), and that surtax amount then gets added to the value for tax before GST is applied — so it compounds with any other duties owed rather than sitting separately.
Example: on a $150 CAD shipment with a 25% surtax and no other duties owed, the surtax comes to $37.50, bringing the value for tax to $187.50, with GST calculated on that total.
The surtax also stacks with anti-dumping duties and MFN tariffs where applicable, so brands paying multiple duty types on the same product should expect the surtax to increase their GST liability too, not just add a flat percentage on top of price.
Goods already in transit to Canada when the surtax took effect on September 8 were exempt — but importers needed documented proof (bill of lading, cargo control documents) to claim it.
How much more will I actually pay?
It depends entirely on which specific tariff item your product falls under — rates range from 15% up to 50%. Because these are assigned by exact Harmonized System (HS) code rather than a general category name, two products that look almost identical can end up in very different rate brackets. The safest way to know for sure is to look up your product’s specific tariff item number on Canada’s official list, rather than going off the category names above.
Where things stand right now
As of September 7, 2026, CBSA has published its official Customs Notice (CN26-23) confirming how the surtax will be assessed and collected, so importers now have administrative clarity even as the broader trade dispute remains unresolved.
Want to keep up as this develops? Visit the Trump Trade Tracker for ongoing updates.
How Passport can help
Tariff lists like this one shift quickly, apply at the individual product level rather than broad categories, and stack on top of tariffs that are already in place — which makes it genuinely hard to track by hand if you’re shipping U.S.-origin goods into Canada.
Passport’s landed cost calculator is built to stay dynamically updated as tariff schedules like this change, so your Canadian pricing reflects current rates without manual upkeep on your end.
If you sell apparel, footwear, electronics, or anything else on the list above into Canada, it’s worth checking whether your pricing already reflects the September 8 surtax. Reach out to our team.
Authored by Thomas Taggart
Head of Global Trade | Passport
Thomas Taggart is a cross-border commerce leader with more than 20 years of experience in international shipping and regulatory affairs. As the Head of Global Trade, Thomas helps ecommerce brands go global by simplifying international trade, tax, and product compliance issues. Prior to Passport, he brought international shipping solutions to market through multiple roles in UPS’s product development organization.
Frequently asked questions
Are Canada’s new tariffs and the U.S. tariffs the same thing?
No. They were two separate actions going in opposite directions. The U.S. tariffs (up to 50%, beginning August 22) applied to Canadian goods coming into the U.S. Canada’s tariffs (15–50%, beginning September 8) applied to U.S. goods coming into Canada.
Could Canada add more products to the list later?
Nothing’s been announced yet, but given how fast this has all moved since mid-August, it’s smart to treat the current list as a snapshot rather than something set in stone.
Do low-value shipments get a pass on these tariffs?
No. Canada’s tariffs are based on how a product is classified, not how much it’s worth, so de minimis thresholds don’t come into play here. That’s a separate topic from the U.S. de minimis exemption changes, which only affect shipments heading into the U.S.
How is the surtax calculated at the border?
Per CBSA’s Customs Notice 26-23, the surtax is calculated as a percentage of the value for duty (VFD) — 15%, 25%, or 50% depending on the tariff item. That surtax amount is then added to the value for tax, along with any other applicable duties, before GST is calculated. So the surtax doesn’t just raise your landed cost by a flat percentage — it also increases the base GST is calculated on. Importers self-assess and report the surtax using specific codes (26186A for 15%, 26186B for 25%, 26186C for 50%) on their Commercial Accounting Declaration.
How do I check if my product is actually on the list?
Canada’s Department of Finance has published the full list of nearly 900 tariff items with descriptions. Search by your product’s tariff item number rather than by category — that’s what actually determines whether a rate applies, not the general product type.
What should importers have done before September 8?
Review your Canada-bound products, match them against the official list, update your pricing or duty estimates for anything affected, and check with your logistics or customs partner about whether your shipping setup needs any changes.
Sources
- AP News — Canada strikes back at US with retaliatory tariffs as trade war escalates
- Office of the Prime Minister of Canada — Statement by Prime Minister Carney on Canada-U.S. trade negotiations
- GV Wire (Reuters) — Canada Announces Retaliatory Tariffs on $20 Billion Worth of US Goods
- Washington Post — Canada issues retaliatory tariffs of up to 50% on U.S. imports
- Houston Public Media (NPR) — Canada announces retaliatory tariffs
- OPB — Canada hits back at U.S. with tariffs as trade war deepens
- CP24 — Canada announces retaliatory tariffs on hundreds of U.S. products
- Government of Canada — Complete List of U.S. Products Subject to Counter Tariffs
- RBC Economics — Next Chapter of the U.S.-Canada Trade War: Section 338 Tariffs
- Auteur — Section 338 Tariffs on Canada: A USMCA Claim Won’t Exempt You
- Canada’s Tariff Response – Impacts for Retail
- CBSA — Customs Notice 25-10
- CBSA — Customs Notice 26-23: United States Surtax Order (2026)