Ottawa matches US Section 338 duties dollar-for-dollar on electronics, appliances and steel; announces $7.5B worker support package for businesses and workers
Canada moved to impose sweeping counter-tariffs on approximately $27.6 billion worth of American goods on Tuesday, after trade negotiations between Ottawa and Washington collapsed late Friday and the US held firm on a broad 50-per-cent duty regime targeting Canadian exports. The new Canadian measures, covering roughly 700 product lines across steel, electronics, appliances, dairy, fish and seafood, and agricultural equipment, take effect at 12:01 a.m. on Tuesday, Sept. 8, 2026.
Finance Minister François-Philippe Champagne, Industry Minister Mélanie Joly, Jobs Minister Patty Hajdu, and Artificial Intelligence and Digital Innovation Minister Evan Solomon announced the package in Ottawa on Tuesday morning, confirming a "dollar for dollar, rate for rate" response to the United States' Section 338 and Section 232 tariff actions. Canadian counter-tariffs will apply at three rates – 15, 25, and 50 per cent – with each product's rate matching the corresponding American duty on the same goods.
"When the United States asked too much and offered too little, we chose to stand up for Canadians. Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy,” said François-Philippe Champagne, Minister of Finance and National Revenue at a press conference on Tuesday.
Supply-chain uncertainty
The tariffs arrive at a moment of acute supply-chain uncertainty for Canadian businesses in manufacturing, food processing, construction, and technology. Goods now subject to a 50-per-cent counter-tariff include steel and aluminum products - previously taxed at 25 per cent - as well as furniture, clothing, and apparel. At the 25-per-cent level sit household appliances, dairy products such as cheese, fish and seafood, and certain steel and aluminum derivative products. Existing counter-tariffs on automobiles and auto parts remain in place, and Washington has threatened to raise those duties on Canadian vehicles and auto components to 50 per cent beginning Jan. 1, 2027.
For businesses in sectors such as manufacturing, logistics, and procurement, the practical implications are immediate: rising input costs across affected product categories will pressure margins, accelerate sourcing reviews, and in some cases force workforce decisions. Electronics and agricultural equipment – both covered under the new measures – feed directly into the operational cost base of businesses far removed from those industries at first glance, including retailers and service-sector employers who procure US-made devices and machinery.
A $7.5 billion package for workers and employers
Alongside the counter-tariffs, the federal government announced a $7.5 billion package of new and enhanced supports, building on nearly $25 billion in trade-related assistance provided since the original round of US tariffs began in 2025, according to the Department of Finance Canada's news release. The package carries significant implications for HR professionals managing workforces in tariff-exposed industries.
The most operationally significant measure for people managers is a new suite of Rapid Response Supports for Workers and Employers, totalling $3.5 billion. This stream includes extended and additional Employment Insurance (EI) temporary flexibilities, allowing affected workers to access income support more readily. It also introduces a new Worker Retention and Retraining Program (WRRP), designed to help employers retain their workforce through disruption while investing in skills transition. The WRRP represents a funded alternative to separation — one worth factoring into workforce planning immediately.
Additional measures include a $1.5 billion investment through the Regional Tariff Response Initiative, delivered through Canada's regional development agencies, providing liquidity support for small and medium-sized enterprises. A further $2 billion Canada Strong Diversification Fund will support businesses with shovel-ready capital projects. A new $500 million liquidity stream under the Business Development Bank of Canada's (BDC) Pivot to Grow program is also available, with the minimum revenue threshold for BDC tariff programs now lowered to $1 million – a threshold change that opens access to a broader range of Canadian employers.
"In a more uncertain world, Canada will continue to invest in our greatest strengths: our workers, our businesses, and our capacity to compete, said Mélanie Joly, Minister of Industry, at the press conference. “Today's new measures will protect jobs, strengthen the industries that drive our economy, and secure the supply chains that underpin our prosperity.”
The counter-tariffs will remain in place, according to the Department of Finance, until the US removes its tariffs on Canadian goods. No timeline for a return to negotiations has been announced.
Canada's counter-tariffs on US goods effective Sept. 8
The table below summarizes key product categories targeted by Canada's retaliatory measures, grouped by sector and applicable tariff rate. The complete list of tariff items at the Harmonized System (HS) code level is published by the Department of Finance Canada at canada.ca. Rates of 15, 25, and 50 per cent mirror the corresponding US duty on the same goods. Tariffs apply only to goods originating in the United States. Existing counter-tariffs on autos remain separately in force.
| Sector | Key product categories | Counter-tariff rate | Notes |
| Steel & aluminum — primary and fabricated | Iron and steel ingots, semi-finished products, flat-rolled steel, stainless steel, alloy steel, bars, rods, wire, tubes, pipe fittings, structural steel, sheet piling, railway track components, steel containers and tanks | 50% | Elevated from 25% previously in place; covers both primary forms and downstream fabricated articles |
| Aluminum — primary and fabricated | Unwrought aluminum, aluminum alloys, bars, rods, wire, plates, sheets, strip, tubes and pipes, aluminum foil, aluminum structures and fittings | 50% | Elevated from 25% previously in place; mirrors US Section 232 rate |
| Furniture | Upholstered and non-upholstered seating, bedroom, office and kitchen furniture, wooden furniture parts, metal furniture | 50% | New counter-tariff category added in this round, effective September 8, 2026 |
| Clothing & apparel | Men's, women's and children's outer garments, shirts, suits, dresses, coats, undergarments, hosiery, headwear, footwear and accessories | 50% | New counter-tariff category; covers HS Chapters 61–65 |
| Household appliances | Washing machines and dryers, refrigerators, dishwashers, cooking ranges and ovens, microwaves, air-conditioning equipment, vacuum cleaners, small kitchen appliances | 25% | Mirrors US Section 338 rate; affects retailers, distributors and manufacturers sourcing US-made appliances |
| Electronics & telecommunications equipment | Smartphones, tablets, laptops and desktop computers, monitors, televisions, optical media devices, digital cameras, telephone switching equipment, electronic components | 25% | HR technology procurement and workplace devices may be affected; applies to US-origin goods only |
| Fish & seafood | Live, fresh, chilled and frozen fish; fish fillets (salmon, cod, halibut, tuna, haddock and others); crustaceans including lobster, crab, shrimp and prawns; molluscs including oysters, scallops and mussels; smoked, dried and salted fish products | 25% | Broad coverage across HS Chapters 03 and 16; affects food-service and retail employers reliant on US-origin seafood |
| Dairy products | Cheese (all varieties), butter and dairy fats, condensed milk, cream, fresh and processed cheese products, dairy-based spreads | 25% | Dairy was a key trigger for US Section 338 tariffs; Canada's response directly mirrors that coverage |
| Agricultural equipment & machinery | Tractors, combine harvesters, planting and seeding machinery, spraying equipment, hay-making machinery, grain handling equipment, irrigation equipment, attachments and parts | 25% | Material impact on agri-business employers, particularly in Ontario, Saskatchewan and Alberta |
| Pulp, paper & packaging | Chemical and mechanical wood pulp, newsprint, uncoated and coated printing and writing paper, paperboard, corrugated board, kraft paper, tissue products, packaging materials | 25% | Significant for publishing, packaging and office-supply procurement across Canadian employers |
| Steel & aluminum derivatives (selected) | Metal stampings, wire products, springs, nails and screws, metal castings, fasteners, HVAC components, industrial piping systems, storage racks, metal shelving | 25% | Derivative products not captured in the elevated 50% category; broad coverage of fabricated metal goods |
| Personal care & cosmetics | Skin care preparations, lip and eye cosmetics, hair care products, perfumes and fragrances, toiletries, beauty appliances | 25% | Consumer-facing category; potential impact on employee benefits and wellness programmes |
| Building & construction materials | Lumber and wood panels (US-origin), plywood, fibreboard, ceramic tiles, glass products, insulation materials, plumbing fittings, electrical fittings | 25% | Relevant to employers with capital project pipelines or facilities management functions |
| Selected consumer and intermediate goods | Certain plastics and rubber products, selected chemicals, some optical and photographic equipment, sporting goods, toys and games — where the matching US Section 338 rate is 15% | 15% | Applies where the corresponding US duty is 15%; full HS-level detail available from the Department of Finance Canada |
Source: Department of Finance Canada, List of products from the United States subject to counter-tariffs effective September 8, 2026 (published August 25, 2026) and Canada announces targeted countermeasures and substantive support for workers and businesses in response to U.S. tariffs (August 25, 2026). Full technical tariff-item list at canada.ca. Tariffs apply to US-origin goods only in accordance with the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
