The measures impose duties ranging from 15 per cent to 50 per cent on hundreds of American products. Canada’s Department of Finance published the tariff schedule on August 25 and revised it the next day.
The revised list contains 629 tariff classifications covering C$27.6 billion (about US$20 billion) in annual US imports, down from the original 874 classifications after 254 fish and seafood classifications were removed and nine other items were added.
Hinges, clasps, mountings and fittings for furniture, doors, vehicles.
Machinery, electronics & vehicles
3 product groups
84
Machinery and appliances
15-25%
~50 items
Refrigerators, freezers, air conditioners, dishwasher parts, forklifts, mowers, cranes, jacks, hoists, certain machinery components.
85
Electrical equipment
25-50%
~16 items
Electric ovens, cookers and ranges (25%), insulated wiring (25%), smartphones (50%), electric accumulators, telecom equipment.
87
Vehicles
50%
~2 items
Motorcycles, goods and livestock trailers.
Furniture & consumer goods
2 product groups
94
Furniture and lighting
25-50%
~22 items
Wood/metal household furniture and chandeliers (50%), kitchen cabinets and some seating (25%).
95
Sporting goods and consoles
50%
~5 items
Video game consoles, golf clubs, fishing rods, exercise equipment.
Source: Department of Finance Canada, revised August 26, 2026 schedule. For individual tariff-item-level lookup, the complete line-by-line list is published on the Department of Finance Canada website.
The products are divided into three main tariff bands — 50%, 25%, and 15% — depending on their customs classification.
Items facing a 50 per cent tariff include:
Steel and aluminium products
Concentrated milk and cream
Whey products
T-shirts
Sweaters
Jackets
Dresses and other clothing
Perfumes
Cosmetics
Plastic products
Paper and pulp products
Smartphones
Communications equipment
Furniture
Plywood
Sporting and recreational goods
Some existing Canadian counter-tariffs on US steel and aluminium products have been increased to 50 per cent to match US duties.
Items facing a 25 per cent tariff include:
Cheese
Refrigerators
Washing machines
Softwood lumber
Toilet paper
Insulated wiring
Kitchen furniture
Stoves
Ranges
Certain household appliances
Parts for some household appliances
Existing counter-tariffs on US automobiles remain separate from the latest measures.
Items facing a 15 per cent tariff include:
HVAC equipment
Forklifts
Agricultural machinery
Some electronics
Will Canadian consumers pay more?
Canadian shoppers could see higher prices on affected US goods if retailers pass on the additional costs. However, a 25% tariff does not necessarily mean a 25% rise in retail prices, as the duty is charged on the customs value of imported goods.
The impact may also take time to appear as businesses sell inventories imported before September 8. Canadian manufacturers relying on affected US materials or components could also face higher production costs.
Story continues below this ad
Which goods are exempt?
The tariffs apply to goods that qualify as US-origin under CUSMA country-of-origin marking regulations.
US goods that were already in transit to Canada when the measures came into effect are exempt from the new tariffs.
Why did Canada impose the tariffs?
The move is a dollar-for-dollar response to US tariffs imposed last month on Canadian exports, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.
The US measures affect around $20 billion, or 5%, of Canadian exports to the country.
Story continues below this ad
The dispute carries particular significance for Canada because the US is its biggest trading partner. Canada has shipped nearly 68% of its total exports to the US this year, with roughly 80% moving duty-free because of exemptions under the US-Mexico-Canada Agreement (USMCA).
What happens to USMCA?
The escalating trade dispute has raised uncertainty over the future of the US-Mexico-Canada Agreement (USMCA).
The agreement is now subject to annual reviews after US President Donald Trump declined to extend it for another decade.
The latest US tariffs were imposed under a Depression-era law and do not allow Canada to use USMCA exemptions. Around 80% of Canadian exports to the US had been moving duty-free because of exemptions under the trade pact.
Story continues below this ad
The uncertainty surrounding USMCA has also raised concerns over investment and economic growth, as Canada faces a trade dispute with an economy around 13 times its size.
Canada-US trade talks remain stalled
Prime Minister Mark Carney said last week that Canada remained ready to sign a trade agreement that benefits both countries.
However, there has been little indication of an immediate breakthrough. A Canadian government source told Reuters that there are currently no talks taking place between ministers or government officials from the two countries.
Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral US economic relations, warned of an “escalatory spiral”.
Story continues below this ad
Harvey said Canada also needs to identify areas where it has leverage in dealing with Washington while keeping communication channels open.
Trump threatens 50% tariffs on Canadian autos
The dispute could escalate further after Trump threatened last month to increase US tariffs on all cars, trucks and automotive parts imported from Canada to 50% beginning January 1.
The threat adds further uncertainty to the trading relationship as negotiations remain stalled and both countries maintain tariffs on billions of dollars worth of each other’s goods.
The Express Global Desk at indianexpress.com which delivers authoritative, verified, and context-driven coverage of key international developments shaping global politics, policy, and migration trends. The desk focuses on stories with direct relevance for Indian and global audiences, combining breaking news with in-depth explainers and analysis.
A major focus area of the desk is US immigration and visa policy, including developments related to student visas, work permits, permanent residency pathways, executive actions, and court rulings. The Global Desk also closely tracks Canada’s immigration, visa, and study policies, covering changes to study permits, post-study work options, permanent residence programmes, and regulatory updates affecting migrants and international students.
All reporting from the Global Desk adheres to The Indian Express’ editorial standards, relying on official data, government notifications, court documents, and on-record sources. The desk prioritises clarity, accuracy, and accountability, ensuring readers can navigate complex global systems with confidence.
Core Team
The Express Global Desk is led by a team of experienced journalists and editors with deep expertise in international affairs and migration policy:
Aniruddha Dhar – Senior Assistant Editor with extensive experience in global affairs, international politics, and editorial leadership.
Nischai Vats – Deputy Copy Editor specialising in US politics, US visa and immigration policy, and policy-driven international coverage.
Mashkoora Khan – Sub-editor focusing on global developments, with a strong emphasis on Canada visa, immigration, and study-related policy coverage. ... Read More
