Counter-tariffs & originCA

Canada’s new counter-tariffs are now in force

Canada applies additional tariffs of 15%, 25% and 50% to selected US-origin goods. Check low-value parcel treatment and whether a valid Chapter 98 or 99 classification provides an exemption.

By Scott GillettPublished 5 Sept 2026Last reviewed 26 Oct 2026Destination: Canada

WHEN IT APPLIESIn force

Who this affects: UK businesses supplying selected US-origin goods into Canada.
Seller action: Check before sending affected goods
Confirm origin, the Canadian tariff item and the listed rate. If claiming Chapter 98 or 99 treatment, ask the Canadian declarant to check the exemption and Schedule 4 exception.
Effective dates / current position: In force from 8 September 2026 at 12:01 a.m.
Last reviewed: 26 Oct 2026 — an editorial source check, separate from automatic timing.
Official source: Open the primary source ↗

What UK sellers need to know: These counter-tariffs apply to selected US-origin goods—not to UK-origin goods merely because they are shipped from the UK. Customs origin and the exact Canadian tariff item determine whether a product is covered.

What is changing?

From 12:01 a.m. on 8 September 2026, Canada applies additional tariffs of 15%, 25% and 50% on selected products originating in the United States. The rate for each listed product matches the corresponding US rate applied under the measures to which Canada is responding.

The measures cover C$27.6 billion of imports from the United States. They are targeted rather than a blanket tariff on every US product.

Which goods are affected?

The official list is set out at Canadian tariff-item level. It includes selected products across sectors such as steel and aluminium, dairy, appliances, agricultural equipment, pulp and paper, electronics, furniture, clothing and apparel.

A broad description is not enough to establish the rate. Businesses must check the exact tariff item in Canada’s Customs Tariff against the official counter-tariff list.

Origin—not dispatch country—is decisive

The Canadian notice says the measures apply only to goods originating in the United States under the applicable Canadian marking-origin rules.

A UK retailer is therefore not affected simply because it sends a parcel from the UK. It may be affected when the parcel contains covered US-origin stock. Conversely, dispatching a US-origin product from the UK does not change its customs origin.

Updated 9 September: CBSA clearance instructions

CBSA Customs Notice 26-23, published on 7 September, confirms that qualifying low-value postal and courier shipments can still attract the surtax, including below de minimis thresholds. The rules also apply through the Courier Low Value Shipment programme.

Codes for the Canadian declarant

15%: CARM surtax code 26186A.
25%: CARM surtax code 26186B.
50%: CARM surtax code 26186C.

These are Canadian accounting codes, not product classifications. Ask the importer or broker to use the correct code and calculate the surtax on the value for duty.

Goods already in transit

An exemption can apply to goods already travelling to Canada under a carrier’s control when the measure took effect. The importer must keep shipping evidence supporting that claim; simply having placed an order is not enough.

Special customs provisions: Chapters 98 and 99

Goods correctly classified under a Chapter 98 or 99 tariff item that is not listed in Schedule 4 of the United States Surtax Order (2026) are exempt from this surtax. This can apply even when their underlying product classification appears in Schedule 1, 2 or 3.

If the Chapter 98 or 99 tariff item is listed in Schedule 4, the goods must also fall within a product classification in Schedule 1, 2 or 3 for the surtax to apply. Ask the Canadian importer or customs broker to confirm both classifications and eligibility for the special provision.

This explains an existing exception; it is not a new tariff or a blanket exemption for small parcels. CBSA expressly says covered US-origin goods can still attract surtax below postal and courier de minimis thresholds. Commercial goods qualifying for an exception must be declared as non-subject to surtax when accounted for.

What UK e-commerce businesses should do

Confirm the customs origin of products sold into Canada.
Identify the correct Canadian tariff item for each product.
Check that tariff item against the Government of Canada’s official list and rate.
Confirm the total landed cost with the Canadian importer, carrier or customs broker.
Keep supplier and origin evidence supporting the declaration.
If using special Chapter 98 or 99 treatment, confirm eligibility and the Schedule 4 exception with the Canadian declarant.
Do not assume a low parcel value removes the surtax. Confirm the accounting code and retain evidence for any in-transit exemption.

Official resources

This is general guidance. Check the live Canadian tariff item, origin rules and CBSA instructions for the specific goods before calculating any surtax.

Updates to this article

9 September 2026
Added CBSA’s operational guidance on low-value shipments, surtax accounting codes and evidence for goods already in transit.
26 October 2026
Clarified the existing Chapter 98 and 99 surtax exemption, its Schedule 4 exception and why low parcel value alone does not remove the charge. This explains the existing rules rather than announcing a new tariff.

Recorded editorial changes. Automatic timing labels do not change the publication or review dates.