Boxes with Canadian maple leaf logo on a conveyor belt in a warehouse.
News Published on August 27, 2026

Canada’s Retaliatory Tariffs on U.S. Goods: What Cross-Border Sellers Need to Know

Canada's new tariffs on U.S. goods take effect Sept. 8, 2026. See which product categories are affected and what cross-border sellers should do now.

Starting September 8, 2026, Canada is adding 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?

Mark your calendar for September 8, 2026. That’s separate from Canada’s earlier counter-tariffs on U.S. steel, aluminum, and autos, which have been running since September 2025 and stay in place right up through September 7 — the day before this new round begins.

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:

Rate
50%
50%
50%
50%
50%
25%
25%
15%
Category
Apparel
Essential oils & cosmetics
Toys, games & sports equipment
Electrical machinery & equipment
Furniture, bedding & lighting
Machinery & mechanical appliances
Carpets & textile floor coverings
Agricultural machinery parts
Examples
Knitted garments, coats & suits, coated fabric garments, swim/ski wear
Perfumes, beauty/makeup, hair preparations
Video games, sports/gym equipment, fishing rods
Appliances, ovens/cookers, phones, monitors, TVs, wire/cable
Seats, other furniture, lamps and lighting fittings
Pumps, air conditioners, refrigerators, dishwashers, power tools
Knotted, woven, tufted, and felt carpets
Parts for lifting, earthmoving, agricultural, and harvesting machinery

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 have been in place since September 1, 2025, and keep running through September 7, 2026. The new list starting September 8 sits alongside that one. So if you sell steel products into Canada, it’s worth checking both lists for your specific item, rather than assuming the new one simply takes 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 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

The situation is still very much unfolding, nothing about it feels settled yet. There’s no sign of talks resuming anytime soon, and Trump has floated the idea of even more tariffs on Canadian autos and steel down the road. 

Given how quickly things have changed since mid-August, treat the rates and dates here as accurate as of publication, and double-check before making pricing decisions on a live order.

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 a quick check-in before September 8. 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’re two separate actions going in opposite directions. The U.S. tariffs (up to 50%, since August 22) apply to Canadian goods coming into the U.S. Canada’s tariffs (15–50%, starting September 8) apply 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 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 I do 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