Canada is responding to new US tariffs and will introduce its own countervailing duties effective September 8, 2026. The rates vary depending on the product, ranging from 15, 25 to 50 percent. More than 700 product and tariff positions are affected, with an import value of approximately CAD 27.6 billion.
The list includes steel and aluminum products, wood products, furniture, dairy products, fish, household appliances, agricultural machinery, paper and electronics. For many steel and aluminum products, the Canadian tariff increases from the previous 25 to 50 percent.
Supply chains that cross the border multiple times become problematic. A raw material can go from Canada to the US, be processed there, and then return to Canada as US-origin goods. In this case, tariffs can be levied at various stages.
However, automatic double taxation does not occur with every border crossing. The determining factors are the country of origin of the goods, the tariff classification number, and the specific processing. This is precisely where practice is likely to become cumbersome quickly.