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ARTICLE · 27 AUGUST 2026

Elbows Back Up: U.S. Section 338 Tariffs, Canada’s Retaliatory Surtaxes And The Current Tariff Landscape

Osler, Hoskin & Harcourt LLP
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As Canada and the United States escalate their trade dispute with new retaliatory tariffs, businesses face mounting compliance challenges across multiple sectors. This analysis examines the comprehensive tariff landscape affecting bilateral trade, including Canada's September 8, 2026 surtaxes on U.S. imports and the corresponding American section 338 tariffs, detailing rates, exemptions, and the legal frameworks governing these measures.

CanadaInternational Law
Matthew Kronby
Matthew Kronby
Jesse Goldman
Jesse Goldman
Danielle Chu
Danielle Chu
Chelsea Rubin
Chelsea Rubin
Sarah Firestone
Sarah Firestone
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Days after Canada-U.S. trade talks collapsed and President Trump followed through with his threat to impose new 50 percent tariffs on US$20 billion of imports from Canada, Canada has responded by announcing new and increased retaliatory surtaxes — tariffs by another name — on U.S. imports, effective September 8, 2026. These surtaxes will be in addition to or increase existing surtaxes on U.S. steel and aluminum, motor vehicle, and steel derivative goods imposed by Canada in response to previous U.S. tariffs.

An economic relationship that, despite irritants, was for many years a model for trade liberalization and economic integration is quickly deteriorating into a trade war with attendant risks for tariff-exposed businesses.

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