At a glance
- Canada is responding to new U.S. tariffs with dollar-for-dollar counter-tariffs on $27.6 billion in U.S. goods.
- Affected goods span steel, aluminum, dairy, appliances, agricultural equipment, electronics, furniture, and more.
- Canada’s counter-tariffs may affect landed costs, margins, cash flow, pricing, and inventory decisions.
- Reviewing tariff classifications and country of origin can help businesses identify where exposure is greatest.
- A $7.5 billion federal support package may provide funding options for affected Canadian businesses and workers.
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Which products are impacted by the new counter-tariffs?
Effective Sept. 8, Canada will impose counter-tariffs of 15%, 25%, or 50% on selected U.S. products targeted by U.S. Section 338 and Section 232 tariffs. The Canadian counter-tariff rate will generally align with the corresponding U.S. tariff rate.
The updated counter-tariffs apply to a broad list of U.S. products, including:
- Steel and aluminum
- Dairy
- Appliances
- Agricultural equipment
- Pulp and paper
- Plastics
- Electronics
- Furniture
- Cosmetics
Aug. 27 update: Fish and seafood products were initially included in Canada’s counter-tariff list. The federal government has since removed them following industry feedback and concerns about potential economic impacts on the sector.
Aug. 28 update: Additional products were added to Canada’s list of counter-tariffs, including:
- Wood charcoal
- Printed matter, including printed pictures or photographs
- Articles of plaster or of compositions based on plaster, including boards, sheets and tiles
- Materials used in the conveyance or packing of goods, including bottles, flasks, jars and pots
- Copper wire
In certain sectors, including steel and aluminum, existing Canadian counter-tariffs will increase from 25% to 50%. Other existing measures, including those affecting U.S. autos, will continue to apply.
Businesses should review the tariff classification and origin of their imported goods as soon as possible to determine whether they are subject to the new or increased counter-tariffs.
New tariff relief and support for Canadian businesses
The federal government has also announced a $7.5 billion tariff support package, including new and enhanced measures for Canadian businesses and workers. The support is expected to be particularly relevant for small and medium-sized enterprises in sectors affected by U.S. tariffs.
These measures are intended to help businesses address tariff-related cash flow pressures, workforce disruption, capital requirements, and market diversification needs.
Businesses should assess which programs may apply to them and prepare the information needed to access support promptly. The support programs may include application requirements, funding limits, intake periods, and processing timelines.
Businesses that may be eligible should identify relevant programs and gather supporting documentation early, rather than waiting until funding is urgently required.
What Canadian businesses need to know about Canada’s counter-tariffs
By the time tariff costs appear on an invoice, the opportunity to respond may already be limited. A focused review now can help businesses protect margins, manage cash flow, and identify available support before pressures escalate.
Tariff exposure may extend beyond direct imports. Businesses should also assess whether tariffs are being passed through by suppliers, embedded in input costs, or affecting customer pricing and contractual obligations. Depending on the supply chain, the impact may not be immediately apparent from customs data or supplier invoices alone.
Businesses should consider reviewing the following areas:
Are you looking for more insights on evolving trade tariffs, policies, and compliance requirements?
Our tariff readiness hub offers resources on the bigger picture of what's happening, industry-specific perspectives, and the nuanced tax implications of tariffs for Canadian businesses.
How BDO can help you mitigate tariff risk
We can help your business understand the impact of the latest tariff measures and develop a response plan.
Our tariff readiness team can help you:
Assess exposure:
Review customs import data, tariff classifications, origin documentation, supplier base, and duty profile.Model cost impact:
Quantify potential effects on landed costs, margins, pricing, inventory, and cash flow.Review classification and origin:
Confirm whether goods are properly classified and supported by origin documentation.Identify relief and funding opportunities:
Assess eligibility for tariff remission, refunds, deferrals, grant funding, or other government support programs.Revisit contracts and pricing:
Assess tariff-sharing options, customer commitments, contract terms, and pricing decisions.Plan supply chain alternatives:
Evaluate sourcing options, supplier diversification, and domestic or non-U.S. procurement strategies.Monitor ongoing changes:
Track tariff updates, support programs, and customs guidance that may affect your business.Contact one of our trusted advisors to discuss how we can support your business.
The information in this publication is current as of August 28, 2026.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.