September 8th Tariff Recap: What you need to know

September 17th, 2026 – In response to the U.S. administration’s August 22nd imposition of 50% tariffs on approximately $27.6 billion CAD of Canadian goods under Section 338 of the Tariff Act of 1930, the Canadian government enacted matched dollar-for-dollar retaliatory surtaxes.

Effective 12:01 a.m., September 8th, 2026, Canada’s countermeasures target $27.6 billion CAD in imports originating from the U.S. Rates are tiered across three rates — 15%, 25%, and 50% — specifically hitting key industrial, manufacturing, and agricultural sectors.

The Canada Border Services Agency (CBSA) released Customs Notice 26-23, outlining the administrative execution, calculation methods, exemptions, and relief mechanisms governing the surtax.

Breakdown of Tariff Bands & Affected Goods

Surtax Rate	Targeted Sectors & Goods Included
50% Surtax	Steel and aluminum products (wire, conductor cables, structures) Dairy (concentrated milk, cream, whey concentrate) Apparel (sweaters, t-shirts, outerwear, dresses) Cosmetics, perfumes, plastics, paper & pulp, plywood Electronics (smartphones, LED fixtures, communications gear)
25% Surtax	Softwood lumber & kitchen furniture Major household appliances (refrigerators, washers, stoves) Specialty cheeses, toilet paper, insulated wiring (≤1,000V)
15% Surtax	Agricultural machinery & heavy equipment HVAC systems and commercial forklifts Selected industrial electronics and tools

Note: Existing counter-tariffs on U.S. automobiles remain in effect separately.
A full breakdown of the affected commodities can be found here.

CBSA Customs Notice 26-23: Key Administrative Provisions

1. Origin & Determination Rules

Origin Marking Standard: Surtaxes apply solely to goods that qualify as U.S.-origin under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
Third-Country Transshipment: Surtaxes apply even if U.S.-origin goods pass through or are shipped from a third country before entering Canada.
De Minimis & Courier Shipments: There are no de minimis thresholds for this surtax; commercial postal and low-value courier imports remain subject to the full rate.

2. Calculation Methodology

Value for Duty (VFD): Surtaxes are levied directly on the goods’ Value for Duty (determined under Sections 47 to 55 of the Customs Act).
GST Application: The 5% Goods and Services Tax (GST) applies to the total value for tax, which includes the base Value for Duty, standard customs duties, plus the retaliatory surtax.
Anti-Stacking Rule: Goods already subject to the Steel Derivative Goods Surtax Order will not face cumulative double-surtaxes.

Automatic Border Exemptions

In-Transit Exception: U.S. goods bound for Canada that were under carrier control prior to 12:01 a.m. on September 8, 2026, are exempt, provided the importer presents proof (e.g., a Dated Bill of Lading or Cargo Control Document).

Chapters 98 & 99 Goods: Goods under Chapters 98 or 99 (such as personal effects, conveyances, and temporary imports) are exempt unless explicitly identified in Schedule 4 of the Surtax Order.
Repairs and Returning Goods: U.S. goods previously imported on a duty-paid basis returning to Canada after temporary departure, or goods sent across the border for repair/alteration, are generally exempt.

Application for Duty Relief & Remissions

Duties Relief & Drawback Programs: Importers can utilize existing CBSA Duty Relief (for goods imported for re-export) and Duty Drawback (claiming refunds on surtaxes paid for goods subsequently exported).
Formal Remission Order – Finance Canada: Importers facing severe economic harm or severe supply shortages can submit an application to the Department of Finance under the U.S. Surtax Remission Framework. Details on the formal application can be found here.
United States Surtax Remission Order: The United States Surtax Remission Order also (2025) remains an applicable remission option after September 8, 2026, and has been extended to cover new counter-tariff measures. Key details include:

Extension to New Orders: The existing remission framework officially extends to the 2026 U.S. Surtax Order and the 2026 U.S. Steel and Aluminum Surtax Amendment Order, both effective as of September 8, 2026.
Horizontal Relief Window: Horizontal relief provisions for key categories (including specific steel, aluminum, and manufacturing inputs) have been extended and remain valid through June 30, 2027.
Eligible Sectors: Remission continues to apply to eligible U.S.-origin goods used in healthcare, public safety, national security, manufacturing, processing, agricultural production, and food/beverage packaging.
Claim Process: Remission is not applied automatically. Importers must self-assess eligibility and instruct their customs broker to enter the appropriate Special Authority code on the Commercial Accounting Document in the CBSA Assessment and Revenue Management (CARM) system.

We recognize that navigating shifting trade policies and sudden duty surcharges presents real operational and financial challenges for your business. As these retaliatory tariffs take effect, our teams are actively monitoring regulatory updates. We are fully committed to guiding you through these policy changes and keeping your cross-border operations running seamlessly.

Should you have any questions, please contact importcompliance@tbgfs.com.