The U.S. tariffs, previously announced on July 20, 2026, took effect on August 22, 2026, and apply to a broad range of Canadian goods. See our previous Insight for more information on the impact these tariffs have on specific Canadian goods and sectors.
The tariffs come after a breakdown in negotiations between the U.S. and Canada before the Saturday, August 22, 2026, deadline to broker a deal. Notably, this is the first set of U.S. tariffs in the ongoing trade war applying to USMCA-compliant goods.
U.S. announces additional auto industry tariffs
On August 24, 2026, U.S. President Donald Trump announced a 50% tariff targeting the auto industry. The proposed tariffs are expected to apply to all cars, trucks, automotive parts and steel, and are scheduled to take effect on January 1, 2027.
Canada announces counter-tariffs as a response
On August 25, 2026, Canada announced dollar-for-dollar counter-tariffs on $27.6 billion worth of U.S. imports. These tariffs are scheduled to come into effect on September 8, 2026. The counter-tariffs target goods and sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
On August 26, 2026, Canada removed seafood and fish products from its counter-tariff list. Canada stated that it continues to work with industry to assess the proposed counter-tariffs, which led to the removal.
In addition to removing fish products from the counter-tariff list, Canada has added wood charcoal; various printed materials; plaster and plaster-related products; packaging materials including bottles, flasks, jars and pots; and copper wire to the counter-tariff list.
It remains unclear whether further changes will be made before the tariffs take effect on September 8, 2026.
Canadian culture and language protections excluded from future tariff actions
On August 27, 2026, Canada-U.S. Trade Minister Dominic LeBlanc announced that Canada’s language and cultural protections will not be targeted in future trade actions. The announcement followed Prime Minister Mark Carney’s statement that, after trade negotiations broke down, the U.S. had sought to limit Canada’s protections for language and culture.
MLT Aikins continues to monitor developments in the Canada-U.S. tariff landscape. Our lawyers, as part of your business’s leadership team, can help you plan and implement the changes necessary to address the challenges and opportunities ahead.
If your organization would like assistance in assessing how these new tariffs may affect your operations or cross-border strategy, please reach out to the MLT Aikins Corporate and Commercial and Competition/Antitrust, Investment and Trade teams. Additionally, visit our Legal Beacon resource centre. The Legal Beacon provides additional resources to address specific needs relating to trade and tariffs.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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