Updated: August 25, 2026
Canada–US trade relations remain tense after talks between the two countries failed to reach a deal.
From August 22, 2026, the US has applied an additional 50% tariff to certain groups of Canadian goods worth a total of about US$20 billion.
Notably, on August 24, 2026, President Donald Trump also threatened to impose a 50% tariff on Canadian cars, trucks and auto parts from January 1, 2027.
Meanwhile, Canada plans to apply retaliatory measures to certain US goods from September 8, 2026.
For businesses shipping goods between Canada and the US, the question now isn’t just:
“What is the new tariff?”
More importantly:
“Is our shipment affected, and what do we need to prepare next?”
How is the new 50% US tariff being applied?
On August 22, 2026, the US began applying an additional 50% tariff to certain Canadian goods covered by the measures issued under Section 338 of the Tariff Act of 1930.
Affected groups include many consumer and industrial products, such as:
- Dairy and some food products
- Alcohol and beverages
- Electronics
- Furniture
- Cement and some building materials
- Paper and paper products
- Clothing, footwear and luggage
- Toys
- Cosmetics
- Some machinery and industrial products
The total value of goods covered by the new measures is estimated at about US$20 billion, roughly 5% of Canadian goods exported to the US.
Not all Canadian goods face the 50% tariff
The new tariff does not apply across the board to all Canadian goods.
The White House has specified which products fall under Section 338 and has excluded some groups, including energy, potash, some products subject to Section 232 and certain other goods.
So businesses shouldn’t rely on the product name alone to work out the tariff.
Check:
Product → HTSUS classification → country of origin → applicable tariff treatment
Does CUSMA exempt businesses from the 50% tariff?
Not necessarily.
A particularly notable feature of the new measures is that Section 338 tariffs apply to covered goods even if those goods qualify as originating under USMCA/CUSMA.
This means:
“CUSMA eligible” does not mean “automatically tariff-free”.
Businesses need to determine the exact tariff classification and the rules that apply to each shipment before calculating landed cost.
Check goods in transit now
For Canada → US shipments in transit, businesses should check:
- Where is the shipment?
- What is the ETA?
- Has the customs entry been filed?
- What is the HTSUS classification?
- Is the shipment on the affected list?
- What is the expected duty exposure?
In particular, the date the goods left Canada is not the only factor to consider.
Section 338 ties the additional duties to goods entered for consumption, or withdrawn from warehouse for consumption, from the effective time of each measure.
So businesses with goods in transit should work with their customs broker or importer of record to determine the specific tariff treatment.
Update August 25, 2026: the US threatens a 50% tariff on Canadian vehicles
After the 50% tariff on certain Canadian goods took effect, tensions continued to escalate.
On August 24, 2026, President Donald Trump said the US could impose a 50% tariff on Canadian cars, trucks and auto parts from January 1, 2027.
This is a tariff announced or threatened by Trump for 2027, not a 50% rate already applied to the entire Canadian automotive industry today.
Why should businesses care?
The Canada–US automotive industry has a highly integrated cross-border supply chain.
If the new tariff is implemented, the impact could spread to:
- Auto parts suppliers
- Manufacturers
- Warehouses
- Cross-border transportation
- Distribution networks
Businesses in the supply chain should start assessing their:
Tariff exposure → landed cost → inventory → transportation → supply chain
Reuters also reported concerns that the new tariffs could disrupt the integrated Canada–US automotive supply chain.
Note: January 1, 2027 is the date Trump announced for the new automotive policy. Businesses should not read it as a tariff already in force on all Canadian vehicles today.
Canada prepares counter-tariffs from September 8, 2026
Canada plans to apply “dollar-for-dollar” retaliatory measures to certain US goods from September 8, 2026.
The groups mentioned include:
- Steel
- Dairy products
- Household appliances
- Agricultural equipment
- Machinery
- Pulp and paper
- Electronics
Canada is also considering further responses to the latest US automotive announcement. On August 25, Canadian Minister Dominic LeBlanc said new retaliatory measures could be announced that day.
This matters especially for businesses that trade in both directions:
Canada → US and US → Canada
Businesses should assess tariffs and landed cost separately for each direction.
Three dates businesses need to watch
| Date | Development |
|---|---|
| August 22, 2026 | Additional 50% tariff on certain Canadian goods takes effect |
| September 8, 2026 | Canada expected to begin counter-tariffs on certain US goods |
| January 1, 2027 | Date announced by Trump for a 50% tariff on Canadian cars, trucks and auto parts |
The situation may still change as Canada and the US continue negotiating.
So businesses should track tariff treatment and shipment status rather than relying on a rate announced at a single point in time.
What should businesses do right now?
1. Check your tariff classification
Don’t rely on the product name alone.
Check:
Product → HTSUS → country of origin → applicable tariff
In particular, confirm whether your product falls under the affected tariff lines.
2. Recalculate landed cost
Businesses should assess:
Product cost + shipping + duty + customs fees + other applicable charges
Then consider the impact on:
Landed cost → margin → selling price
An additional tariff can significantly change the profit on each shipment.
3. Review shipments in transit
If you have Canada → US goods on the move, check:
Location → ETA → entry → tariff → expected duty
Reviewing early gives you more time to work with your customs broker and prepare if extra costs or delays arise.
4. Watch both directions of Canada–US trade
If your business ships:
Canada → US and US → Canada, assess each direction separately.
Each direction may have:
- Different tariffs
- Different classifications
- Different customs requirements
- Different countermeasures
- Different cost exposure
5. Prepare for further changes
Current developments show that trade policy can change quickly.
Businesses should set up a simple monitoring process:
Monitor → check → calculate → coordinate → act
instead of waiting until a shipment runs into trouble before checking.
How can Soleil Transportation help?
With tariffs and trade policy changing quickly, businesses need more than just a shipping option.
They need visibility, communication and coordination throughout the shipment.
Shipment planning
Soleil Transportation helps businesses:
- Plan shipments
- Prepare shipping information
- Estimate transit times
- Plan shipping schedules ahead
Tracking and updates
Soleil Transportation helps with:
- Shipment tracking
- Transit status updates
- ETA monitoring
- Updates when anything changes
Logistics coordination
When a shipment runs into a problem, Soleil Transportation helps coordinate and keep all parties informed.
The goal is to help businesses know:
Where the shipment is → what the issue is → what the next step is
Note: Soleil Transportation supports logistics and shipment coordination. It does not replace a customs broker, the importer of record or the customs authorities in determining tariff classification, customs compliance or duty obligations.
Canada–US shipment quick check
Before your next shipment, check:
- Is the product on the affected tariff lines?
- Has the HTSUS classification been confirmed?
- Is the country of origin correct?
- Does CUSMA actually exempt or reduce the tariff for this shipment?
- What is the new landed cost?
- Are shipments in transit affected?
- Has the customs broker confirmed the tariff treatment?
- Do you need to adjust your inventory or shipping strategy?
If you’re not sure, check before the shipment goes.
Shipping between Canada and the US?
Tariffs may change.
Regulations may change.
But businesses can still stay ahead by following the right information, checking shipments and preparing a logistics plan early.
Soleil Transportation supports businesses with:
Shipment planning · tracking · updates · coordination
Contact us on +1 888-998-5199 or at info@soleiltransportation.com.
Ship smarter. Stay informed.
Sources
-
Reuters – August 25, 2026
Canada considers new retaliatory tariffs following Trump’s threat to raise tariffs on Canadian cars, trucks and auto parts.
Read the full article -
Reuters – August 24, 2026
Trump threatens 50% tariffs on Canadian cars, trucks and auto parts from January 1, 2027.
Read the full article -
Reuters – August 21, 2026
U.S. imposes 50% tariffs on approximately US$20 billion of Canadian goods after trade talks fail.
Read the full article -
The White House – July 20, 2026
Fact sheet on additional 50% tariffs on certain Canadian goods under Section 338.
Read the official fact sheet -
The White House – July 20, 2026
Presidential proclamation on additional duties on certain Canadian imports under Section 338.
Read the official proclamation
Disclaimer
This content was compiled by Soleil Transportation to provide up-to-date information on Canada–US trade and help businesses plan their shipping.
Tariff policies, customs requirements, tariff classifications and trade measures may change. This content does not replace legal, tax or customs brokerage advice.
For the specific duty obligations of each shipment, businesses should confirm with a customs broker, the importer of record or the competent customs authority.
