UPDATE: Following the issue of this tax publication, Canada has updated the list of tariff items subject to the Canadian counter tariffs.
Canadian businesses should review the latest countermeasures announced by Canada and determine the impact on their supply chains and transfer pricing policies, and if they may benefit from new support measures. Canada announced new tariff measures on August 25, 2026 that will match the new U.S. tariffs dollar-for-dollar by tariffing $27.6 billion of comparable U.S. goods, starting September 8, 2026. These countermeasures are in response to the United States’ 50% Section 338 tariffs on a wide range of imported goods from Canada that the United States imposed effective August 22, 2026. The new Canadian 15%, 25% and 50% counter tariffs on goods targeted by U.S. Section 338 and Section 232 tariffs are concentrated in various sectors including steel and aluminum, fishery products, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. Canada also announced a $7.5 billion package to help workers and businesses, including grants and interest free loans for eligible small and medium sized businesses.
Canada did not reintroduce the Digital Services Tax that was canceled in 2025 to accommodate trade negotiations at that time, and did not extend the fuel tax holiday that is set to expire on September 8, 2026.
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