CANS Canada-U.S. Tariff Info Centre

What does the Canada-U.S. tariff war mean for your business?

To help our members remain informed and act proactively in the face of these tariffs, CANS has compiled the latest information from government and industry. This dedicated web page will be updated regularly with key announcements, recent news, and useful links and resources.

Do you know how your business will be impacted?  The tariffs and countermeasures will have a significant impact on the Canadian economy and the construction industry. Potential material cost increases, driven by currency fluctuations and tariff threats pose significant risks. The construction industry’s success will hinge on its ability to adapt to shifting trade dynamics amid upcoming challenges.

Tariff Updates

US Section 338 Tariffs

On August 22, 2026, following the breakdown of trade talks, U.S. President Trump introduced new tariffs of 50% on approximately $28 billion in Canadian imports under Section 338 of the U.S. Tariff Act. The measures were presented as a response to Canada’s treatment of U.S. automobiles, alcohol, and dairy products.

  • A 50% ad valorem tariff under Section 338 will apply to all covered goods, regardless of whether they qualify as originating under CUSMA.
  • These duties are in addition to any other applicable duties, taxes, fees, exactions, and charges.
  • The Section 338 duties will not apply to products subject to tariffs under Section 232 of the Trade Expansion Act of 1962, including steel, aluminum, and lumber, or to articles covered by the World Trade Organization Agreement on Trade in Civil Aircraft, excluding unmanned aircraft.

Canadian Countermeasures

On August 25, 2026, the Government of Canada announced dollar-for-dollar counter-tariffs, effective September 8, 2026. The original list covered approximately $27.6 billion in U.S. imports, with counter-tariff rates of 50%, 25%, and 15%.

The current list of products subject to counter-tariffs is available here: List of products from the United States subject to counter-tariffs effective September 8, 2026 – Canada.ca

On September 2, 2026, the Canadian Finance Minister announced the current pause on the federal excise tax on gasoline and diesel will be extended until next February.

Remission

Subject to approval by the Governor in Council, the federal government intends for the new counter-tariffs to benefit from remission consistent with existing relief:

  • Product- and company-specific remission that has been implemented under the United States Surtax Remission Order will apply to the new tariff measures, in accordance with the terms of the Order.  For example, steel goods currently eligible for remission of the 25% tariff would benefit from relief of the 50% tariff.

Claims for remission or refunds of duties paid can be made in accordance with the “How to Apply” section of the CBSA’s Customs Notice. Please note that by using the appropriate authorization code on your customs declaration, duties can be waived at the time of the importation, rather than needing to be paid and reimbursed.

For goods not already eligible for remission, the federal government is continuing to accept and assess requests for remission under the U.S. Remission Framework, which provides for remission in certain circumstances, e.g., where goods used as inputs cannot be sourced domestically: Process for requesting remission of tariffs that apply on certain goods from the U.S. – Canada.ca.

In addition to remission, importers may also be eligible for surtax relief on re-exported goods through the Import for Re-export Program (IREP), Duties Relief or Duty Drawback Programs.

Support

On August 25, 2026, the federal government announced an additional $7.5 billion in support for Canadian workers and businesses affected by U.S. tariffs. Further information is available here: Canada announces targeted countermeasures and substantive support for workers and businesses in response to U.S. tariffs – Canada.ca


You can also contact a business navigator by calling the toll-free tariff hotline at 1-800-670-4357. More information on Nova Scotia’s tariff supports can be found here: https://novascotia.ca/tariffs/.

Statements from Leadership

Premier’s Office: Statement on U.S. Tariff Announcement

August 22, 2026 | “I continue to stand ready to support and work with the Prime Minister. We will work together to do everything possible to protect the massive number of Nova Scotian and Canadian families, workers and businesses that have now been added to the large list of those directly impacted by President Trump’s devastating tariffs.

It’s clear that we cannot trust or rely on the United States as we once did. This reality must make us more determined than ever to make Nova Scotia and Canada stronger. For Nova Scotia that means developing our own energy, developing our own natural resources and finding new markets for Nova Scotian goods and services.”

April 2, 2025 | “Moving forward, there will still be impacts from the trade direction of the U.S. administration. Our work to diversify markets will not change. In fact, it will ramp up. And, of course, we will work with those who remain impacted on both an individual basis and larger-scale programming basis, as needed.

“This could mean loans, grants, support for diversification or whatever. We will work with you to find the best support for your circumstance.

“During this period of uncertainty, the initial non-tariff retaliatory measures we put in place will remain. This means we will continue to look for ways to put Nova Scotia and Canadian companies first as we review and cancel non-essential contracts with U.S. suppliers.”

Recent statements from Government of Nova Scotia:

Prime Minister’s Office: Canada will continue to build

August 21, 2026 | “… I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa. They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute. However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.

At midnight tonight, the U.S. intends to impose a 50% tariff on roughly $28 billion of Canadian goods. Canada will match those tariffs dollar for dollar to protect our workers and businesses.

In the coming days, the government will introduce additional measures to support Canadian workers and businesses, building on the nearly $25 billion in support provided over the past 18 months.”

July 21, 2026 | “Canada believes in the benefits of free and fair trade, as evidenced by our new government signing more than 20 new economic and security partnerships. This trade dispute has raised costs for families, particularly in the U.S. Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.

In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families.”

August 1, 2025 | “Sectors of our economy – including lumber, steel, aluminum, and automobiles – are heavily impacted by U.S. duties and tariffs. For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets.

“The federal government, provinces, and territories are working together to cut down trade barriers to build one Canadian economy. We are developing a series of major nation-building projects with provincial, territorial, and Indigenous partners.”

April 3, 2025 | “The U.S. tariffs will do harm to American workers and businesses, but Canada will also be impacted, with every Canadian feeling the effects. The Government of Canada’s position has always been clear: we will fight these tariffs, protect our workers, and build the strongest economy in the G7.”

Recent statements from The Prime Minister’s Office:

The White House

September 8, 2026 | President Trump signed five Proclamations pursuant to Section 338 of the Tariff Act of 1930 to ban certain products from Canada and modify the scope of the tariffs on certain Canadian products previously announced on July 20, 2026.

Recent statements from The White House:

Overview of Canada’s Retaliatory Measures

  • On August 25, 2026, Canada announced it will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. Effective September 8, Canada will impose counter-tariffs of 15, 25 and 50% on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with the rate for each product matching the corresponding U.S. rate. Canada’s counter tariffs will apply to products covering $27.6 billion in imports from the U.S. and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs.
  • On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. The U.S. subsequently limited these tariffs to non-CUSMA compliant goods.
  • On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.
  • On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country.
    • The U.S. also intends to apply 25 per cent tariffs on certain automobile parts on May 3. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically the application of the 25 per cent tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
  • On April 9, 2025, Canada imposed 25 per cent tariffs on non-CUSMA compliant vehicles imported into Canada from the United States, and 25 per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant vehicles imported into Canada from the United States.
  • On Sept 1, 2025, Canada removed counter tariffs on U.S. goods, with the exception of those on steel, aluminum and autos.
  • Canada has responded to the U.S. imposition of tariffs on Canadian goods by introducing a suite of countermeasures designed to compel the U.S. to remove the tariffs as soon as possible. These countermeasures include:
    • Imposing tariffs of 25 per cent on $30 billion in goods imported from the U.S., effective March 4, 2025.
    • Holding a public comment period on potential counter tariffs on additional imports from the U.S.
    • Imposing, as of March 13, 2025, 25 per cent reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion.
    • Imposing, as of April 9, 25 per cent tariffs on non-CUSMA compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made vehicles. Vehicle imports from the U.S. totalled $35.6 billion in 2024.

On March 4, Canada imposed a $155-billion package of retaliatory measures, including a 25 per cent retaliatory levy on $30 billion in goods, and tariffs on the remaining $125 billion in 21 days. These will remain in place so long as the U.S. ones are, and other non-tariff measures are being discussed.

As a first response to the direct threat posed by U.S. tariffs, Canada imposed 25 per cent reciprocal tariffs, effective March 13, 2025, on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as on additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion.  Prime Minister Mark Carney announced another 25 per cent tariff on March 27, on all cars coming to Canada from the U.S. This matches the massive automotive tariffs coming into force by the U.S. on April 3.

Protect Your Business

The more you proactively prepare your business for possible tariffs, the more you can mitigate their impact on your operations. See below for some tips on where to start as you navigate potential challenges.

Review your current contracts.

Look at clauses for price escalation, change-in-law, and force majeure.

Diversify your supply chain.

Reduce your dependency on cross-border materials by sourcing from suppliers in our region. Forge new and strengthen existing relationships for long-term partnerships that allow for more collaboration and flexibility in sourcing supplies amid trade uncertainty.

Explore alternative products or suppliers from countries not impacted by the tariffs.

Cost management and pricing strategies.

Reduce waste and optimize material usage. Lock in pricing with bulk purchases before tariffs are implemented — especially useful for materials with long-lead times. Factor in potential cost increases with pricing projects.

Engage in strategic planning.

Manage your cash flow to handle unexpected fluctuations and model different economic scenarios to develop contingency plans to adapt quickly in uncertainty.

Proactive risk management.

Account for potential trade difficulties and build extra time into project schedules. Communicate clearly and proactively with clients around budget and timeline expectations. Expand contingency budgets to absorb potential cost increases.

Resources and Tools

Tariff Response Hotline: The Province of Nova Scotia has established a tariff response hotline and survey to collect perspectives and concerns from Nova Scotian businesses and individuals.

If you have questions or would like support, email TariffResponse@novascotia.ca or contact business navigators by calling 1-833-734-1300.

Workforce Tariff Response Fund: The Workforce Tariff Response Fund will help employers and workers who have been directly or indirectly affected by tariffs or global market shifts in certain sectors or industries. Support is delivered through this funding program and focuses on training (retraining, reskilling, upskilling).

Learn more: https://novascotia.ca/tariffs/

Tariff and Customs Advisory Program (TCAP): The Tariff and Customs Advisory Program (TCAP) is a new initiative to help Atlantic Canadian businesses not just navigate tariffs, but optimize supply chains and stay compliant with trade regulations.

Learn more: https://investnovascotia.ca/export/programs-services/tariff-and-customs-advisory-program 

Nova Scotia Loyal: Nova Scotia Loyal is a new government program designed to make it easier for Nova Scotians to identify, purchase, and support local products. Producers and retailers of Nova Scotian Products can apply to be featured in the program.

Learn more: https://nsloyal.ca/en

Reach New Markets: Businesses needing to identify and enter new markets, optimize their supply chain and connect with potential partners and customers in Canada and globally can access programs, services and resources through Invest Nova Scotia.

Learn more through Invest Nova Scotia’s Reach New Markets webpage.

The Business Development Bank of Canada (BCD) has released a number of resources and articles to help you prepare your business:

CBC: Everything you want to know about the Canada-U.S. tariffs.

Canadian Chamber of Commerce: What the Return of the “Tariff Man” Means for the Canadian and U.S. Economies.

U.S. Customs: Guidance on Additional Duties on Imports from Canada.

United States International Trade Commission: Note 11 of the Harmonized Tariff Schedule of the United States. This document outlines what qualifies as USMCA origin.

Trade Commissioner Service: The Exporter’s Guide to CUSMA Compliance: Tools, Tips and Tariff Navigation

Government of Canada: List of products from the United States subject to counter-tariffs effective September 8, 2026

Government of Canada: List of products from the United States subject to 25 per cent tariffs effective March 4, 2025.

Construction-related goods now subject to a 25% tariff:

  • HS Code 4408 – Veneer sheets and wood sheets for plywood or other wood products
  • HS Code 4418 – Builders’ joinery and carpentry of wood (doors, windows, and their frames)
  • HS Code 8418 – Refrigerators, freezers, and heat pumps
  • HS Code 8516 – Electrical water heaters and space heaters
  • HS Code 8205 – Hand tools, including hammers, screwdrivers, and wrenches
  • HS Code 8302 – Metal fittings for buildings (hinges, locks, brackets, and other mountings)

Remissions for Canadian counter-tariffs

For more information on how to make a claim for remission or refunds of duties paid, refer to CBSA’s Customs Notice.

In addition to remission, importers may also be eligible for surtax relief on re-exported goods, through Canada’s Import for Re-export Program (IREP), Duties Relief or Duty Drawback Programs.

U.S. Tariff Rollout

Canada Tariff Rollout

  • December 26, 2025: 25% global tariff on steel derivative imports and reduced tariff rate quotas (TRQs) on steel
  • March 13, 2025: 25% tariff on selected steel and aluminum products
  • April 9, 2025: 25% tariff on all U.S. vehicles that don’t meet CUSMA requirements, in response to similar tariffs introduced by the U.S.
  • July 31, 2026: 25% surtax on imports of certain wood cabinets and vanities
  • August 25, 2026: Most steel and aluminum products, furniture, clothing and apparel from the U.S. will be subject to a 50%  tariff, while dairy products such as cheese along with fish, seafood, and certain steel and aluminum derivative products facing a 25% tariff.

News

Additional Information

Recent Announcements and Press Releases:

The Canadian Construction Association (CCA):

Backgrounders and Supporting Information:

Advocating for Industry

Given the significance of these announcements, CANS along with the CCA will continue to work around the clock and take the necessary time to fully assess how these tariffs will be implemented and their impact on Nova Scotia’s construction industry.

We remain committed to keeping you informed and will continue to update this page as the situation evolves. In the meantime, we are here to support you. Please do not hesitate to reach out with any questions or concerns about the impacts of these tariffs and countermeasures.

If you have any feedback on this issue, please share your concerns with:

Taylor Shaw
Research, Program & Policy Lead
tshaw@cans.ns.ca
902-210-1720

On Saturday, February 1, 2025, President Trump signed an executive order imposing 25% tariff on imported goods from Canada, Mexico and China. On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods, and 10 per cent on energy exports from Canada imported into the U.S. from Canada, came into effect. The U.S. has indicated that this action is in response to national security concerns, particularly related to illegal immigration and the flow of fentanyl and other drugs into the U.S.

On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.

In response, the Government of Canada swiftly announced countermeasures, introducing targeted tariffs on American goods to protect Canadian industries and workers.

On February 20th, 2026, the Supreme Court of the United States (U.S.) struck down certain tariffs that had been imposed using a U.S. law called the “International Emergency Economic Powers Act” (IEEPA). In response, President Trump announced new global tariff of 10% under a different U.S. law. For Canada, CUSMA-compliant goods remain exempt, while non-compliant goods will face a 10% tariff (instead of the previous 35%). Tariffs on steel, aluminum, copper, some automotive parts, lumber and other wood products remain in place under different U.S. rules.

As of April 20, 2026, Canadian businesses that served as the “Importer of Record” and paid U.S. tariffs on non-CUSMA compliant goods under the IEEPA between February 4, 2025, and February 24, 2026, may now be eligible for refunds (see here for more details).

Construction Quarterly Economic Insights: Winter 2025: Amidst a challenging economic climate marked by trade uncertainties and rising borrowing costs, the Canadian Construction Association’s (CCA) winter report highlights how trade policies and material dynamics are impacting the construction industry. Download your copy here, or watch a briefing on this report.

Key Takeaways:

  • Canada’s reliance on imports for critical materials like steel, aluminium, and lumber makes the sector particularly sensitive to trade disruptions.
  • The construction industry’s GDP experienced modest growth in Q3 2024, reflecting the industry’s resilience in navigating economic uncertainties.
  • Investments in multi-residential projects continued to drive growth, increasing during the third quarter.
  • The industry must focus on building resilient supply chains and reducing reliance on volatile import markets.

The Halifax Chamber of Commerce shared helpful information from Finance Canada that outlined a discretionary remission process for Canadian importers that might have been impacted by Canada’s retaliatory tariffs.  The remission process applies to the first round of Canada’s retaliatory tariffs and any subsequent rounds.

The Canadian government is considering requests for remission in these two instances:

  1. Situations where goods used as inputs cannot be sourced domestically, either on a national or regional basis, or reasonably from non-U.S. sources
  2. To address, on a case-by-case basis, other exceptional circumstances that could have severe adverse impacts on the Canadian economy. In granting a remission order, the Government of Canada will weigh public policy reasons in the factual circumstances against the policy rationale of the retaliatory tariffs.

Government of Canada: Process for requesting remission of tariffs that apply on certain goods from the U.S.

Questions regarding remission requests can be shared directly with Finance Canada at fin.remissions-remises.fin@canada.ca.