On August 25, 2026, Canada's Department of Finance published the list of US-origin products that will face new Canadian counter-tariffs beginning at 12:01 a.m. on September 8, 2026. The rates are 15%, 25%, and 50%, and they mirror the US tariff rate applied to the same category of goods. If you sell into Canada, or buy inputs from a Canadian supplier who resells across the border, this changes your landed cost math on September 8.

This page summarizes what the Canadian government announced, which product categories are affected, and questions US small businesses may want to raise with their advisors this week. For a specific shipment, talk to a licensed customs broker.

What did Canada announce on August 25, 2026?

Canada's Department of Finance issued a backgrounder confirming that, effective September 8, 2026, Canada will impose 15%, 25%, and 50% surtaxes on a defined list of products originating in the United States. The measure is Canada's response to the US decision to apply a 50% Section 338 tariff to roughly $27.6 billion of Canadian goods effective August 22, 2026.

The Canadian counter-tariffs are designed to match the US action dollar for dollar. Ottawa's list covers approximately $27.6 billion in US imports and concentrates on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Two operational details matter for planners:

• The surtax applies only to goods that qualify as US-origin under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations. Country of manufacture, not the shipper's address, controls.
• Goods already in transit to Canada on September 8, 2026 are exempt from the countermeasures. The Canada Border Services Agency will publish administrative details through its Customs Notices channel.

Which US products are affected by the September 8 counter-tariffs?

The published list is organized by tariff item under Canada's Customs Tariff Schedule, and each line is assigned a rate of 15%, 25%, or 50%. Below is a plain-English summary of the categories a small business is most likely to encounter. The official tariff-item list controls, so cross-check your Harmonized System (HS) code against the Canada.ca table before quoting a customer.

50% rate: dairy inputs, honey, molasses, and baking mixes

The heaviest surtax lands on a set of dairy and food-processing inputs.

• Milk and cream, concentrated or with added sugar (HS 0402.10 through 0402.99), whether within or over Canada's tariff-rate quota access commitments
• Whey and whey protein concentrate, powdered whey, and modified whey products (HS 0404.10 and 0404.90)
• Natural honey (HS 0409.00.00)
• Cane and other molasses (HS 1703.10 and 1703.90)
• Mixes and doughs for bakers' wares in packages up to 11.34 kg, including frozen dough for bread, buns, rolls, and pizza crusts (HS 1901.20)

If you supply whey protein to a Canadian sports-nutrition brand, ship US honey to a Canadian distributor, or send frozen dough to a Canadian bakery chain, your customer's landed cost rises by 50 percentage points on September 8 unless the shipment is already in transit.

25% rate: cheese and curd

Cheese carries a 25% surtax across essentially every named variety and format in HS heading 0406:

• Fresh (unripened) cheese and curd
• Grated or powdered cheese, including Cheddar types
• Processed cheese
• Blue-veined cheese (Penicillium roqueforti)
• Named varieties: Cheddar, Camembert, Brie, Gouda, Provolone, Mozzarella, Swiss/Emmental, Gruyère, Havarti, Parmesan, Romano
• Other cheeses, both within and over access commitments

15% rate: additional lines from the published schedule

The Canada.ca backgrounder confirms that some listed tariff items carry a 15% rate. It also says the overall countermeasure package covers sectors such as steel, appliances, agricultural equipment, pulp and paper, and electronics, so businesses should confirm the rate by tariff item rather than by sector. Look up your specific HS code against the Canada.ca table.

What does the counter-tariff mean for a US small business?

You do not need to be a large exporter to feel this. A one-person cheese distributor, a wholesale honey producer, a bakery-mix formulator, or a Shopify store that fulfills Canadian orders from a US warehouse can all be affected on September 8.

Three practical implications:

1. The surtax is paid at the Canadian border, but it lands on your invoice

Review the Incoterms on each Canadian order with your broker or counsel. The term you used can affect which party is responsible for import duties and how quickly you need to discuss a price change with the buyer. Either way, the price your Canadian buyer sees on September 8 is likely to be materially higher.

2. Origin, not shipping point, decides the rate

Because the surtax applies only to goods that qualify as US-origin under the CUSMA marking regulations, a product finished in the US from imported components may still be caught, and a product finished outside the US and merely warehoused in the US may not be. If your supply chain crosses borders, pull your product's country-of-origin determination now.

3. Goods already in transit on September 8 are exempt

If you have an order the Canadian buyer needs, moving it into transit before 12:01 a.m. September 8, 2026 may keep that shipment outside the countermeasure if it meets CBSA documentation requirements. Keep the bill of lading and carrier documentation, and confirm CBSA's administrative requirements before clearing the shipment.

What should exporters do before the September 8 counter-tariffs take effect?

Use this as a working list with your customs broker, accountant, and Canadian customers.

CANADA COUNTER-TARIFF READINESS CHECKLIST — EFFECTIVE SEPT 8, 2026

1. Product identification
   [ ] Pull the 10-digit HS/tariff item for every SKU you ship to Canada
   [ ] Cross-reference each item against the Canada.ca list published August 25, 2026 and updated August 26, 2026
   [ ] Note the applicable rate (15%, 25%, or 50%) per SKU

2. Origin
   [ ] Confirm each SKU's country of origin under CUSMA marking rules
   [ ] Document component sourcing for any borderline items
   [ ] Ask your customs broker to review origin determinations

3. Contracts and pricing
   [ ] Identify all open Canadian orders with delivery after Sept 8
   [ ] Check Incoterms — who bears the surtax, you or the buyer?
   [ ] Draft a customer notice with the new landed cost per SKU
   [ ] Review force majeure and tariff pass-through clauses

4. Logistics
   [ ] List shipments you can move into transit before 12:01 a.m. Sept 8
   [ ] Preserve bill-of-lading and carrier proof-of-transit documents
   [ ] Confirm CBSA Customs Notice guidance before clearing

5. Cash flow
   [ ] Model Q4 revenue at the new price point
   [ ] Identify Canadian customers likely to pause or cancel
   [ ] Adjust operating cash reserve accordingly

Turn this checklist into a spreadsheet with one row per SKU, then review it with your customs broker before using it for pricing or clearance decisions.

How should small businesses update contracts and customer communications?

If you have signed Canadian purchase orders that will ship after September 8, read the tariff and change-in-law clauses before you email your customer. Two clauses matter most:

• Tariff pass-through. Some contracts explicitly allow the seller to pass new import duties to the buyer. Others fix the price and put the risk on the seller. If your contract is silent, ask counsel or a qualified advisor how the added cost is allocated before you quote a revised price.
• Change in law / force majeure. A sudden government-imposed surtax may trigger a renegotiation right or a termination right depending on how the clause is written.

Whatever the contract says, contact your Canadian customer this week. A short email that names the specific HS codes, the new rate, and your proposed split beats a surprise invoice.

How should exporters plan cash flow for Canada counter-tariffs?

If Canada is a meaningful share of your revenue, model two scenarios: customers accept the pass-through, and customers cut orders. Even at a 25% surtax on cheese, a Canadian distributor may switch to a European or domestic Canadian supplier for the remainder of the year. Add a cash-reserve line item to your forecast based on your sales cycle, payment terms, and supplier due dates.

If you use Novo business checking, confirm current fees, wire terms, and integrations before building a Canada-specific payment workflow. Confirm how your payment processor handles currency conversion before relying on any CAD-to-USD workflow. Novo does not accept cash deposits; if your business routinely receives cash, plan for a separate deposit method.

Frequently asked questions

When exactly do the counter-tariffs take effect?

12:01 a.m. on September 8, 2026, per the Department of Finance Canada backgrounder dated August 25, 2026.

Are goods in transit exempt?

Yes. Canada's countermeasures do not apply to US goods that are already in transit to Canada on the day the surtax comes into force. Keep carrier documentation.

How is "US origin" determined?

By the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations, not by the shipping address. A US-warehoused good made elsewhere is not necessarily caught; a US-made good shipped from Mexico still is.

Where can businesses find the official Canada counter-tariff list?

On Canada.ca, published by the Department of Finance Canada on August 25, 2026 and updated August 26, 2026, at the URL cited below. Administrative details for customs clearance are on the Canada Border Services Agency's Customs Notices page.

Does this affect services or digital goods?

The Canada.ca announcement lists tariff items for goods under Canada's Customs Tariff Schedule; it does not identify services, SaaS, consulting, or digital deliverables as covered by this surtax.

What if my HS code is close to a listed item but not identical?

Tariff classification is line-specific. A 10-digit HS code that differs from a listed item by one digit is a different tariff item and may or may not be caught. Confirm with a licensed Canadian customs broker before you quote a customer.

Next steps and official resources

The primary source for the list, rates, and effective date is the Department of Finance Canada backgrounder: List of products from the United States subject to counter-tariffs effective September 8, 2026, published on Canada.ca. For customs administration questions, including in-transit rules, documentation, and refund procedures, watch the Canada Border Services Agency Customs Notices page.

Disclosures

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