Now the threat becomes reality.
On August 22, 2026, the USA implemented the announced additional tariffs of 50 percent on a wide range of Canadian goods. The measure was originally scheduled for August 19 but was postponed by three days due to ongoing negotiations. However, no agreement was reached.
Canadian exports worth approximately 20 billion US dollars are affected. These include, among others, wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment. Overall, this affects only about five percent of Canadian exports to the USA. However, this percentage calculation is of little comfort to an affected exporter: if their goods are on the list, 50 percent tariff is simply 50 percent tariff.
Particularly problematic is that the new tariffs can also apply to affected goods that actually meet the rules of origin of the North American free trade agreement USMCA—called CUSMA in Canada. The USA bases these additional tariffs on Section 338 of the American Tariff Act of 1930. In simplified terms, this old provision allows the US President to impose additional tariffs if the USA determines that its trade is being disadvantaged.
Canadian Prime Minister Mark Carney has since stopped the negotiations and recalled the negotiators to Ottawa. His statement was quite clear: the USA had demanded too much and offered too little. Canada therefore intends to retaliate "dollar for dollar."
However, these Canadian counter-tariffs are not set to take effect until September 8, 2026. Planned are US goods from the steel, dairy products, household appliances, agricultural machinery, pulp and paper, and electronics sectors. The exact list is yet to follow.
For logistics, this becomes more problematic. It is not just about higher tariff costs. Customers must suddenly recalculate tariff numbers, origin, Incoterms, and sales prices. And those calculating a transaction today must already anticipate the next round.