Canada’s New U.S. Countertariffs Take Effect
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Canada has implemented new countertariffs on selected goods originating in the United States.
The surtaxes took effect at 12:01 a.m. Sept. 8 and apply at rates of 15%, 25% or 50% of the imported goods’ value for duty, depending on the applicable tariff classification. The Canada Border Services Agency said the surtax is assessed in addition to other duties that may apply.
The measures cover approximately $27.6 billion in annual imports from the United States. Canada developed the product schedule in response to U.S. Section 338 and Section 232 tariffs and is generally matching the rate assigned to the corresponding U.S. measure.
The surtaxes apply based on U.S. origin rather than the country from which the products are shipped. Goods that were already in transit to Canada when the measures took effect may qualify for an exception when the importer can provide supporting documentation.
The CBSA published Customs Notice 26-23 with instructions for administering the United States Surtax Order (2026). Importers must determine whether a product appears in one of the order’s schedules and apply the corresponding surtax rate when accounting for the shipment.
PCI’s earlier review of Canada’s product schedule found no entries under HS headings 3208, 3209 or 3210, which cover many solventborne, waterborne and other paints and varnishes. The list also contained no entry under heading 3206, which includes several pigment and coloring-material classifications.
The absence of those headings does not insulate the entire coatings supply chain. Covered goods include self-adhesive plastic film and tape, PVC wall and floor coverings and several categories of painted, varnished or plastics-coated steel.
The Canadian Coatings Association’s initial assessment similarly found that most core coatings, adhesives, sealants and elastomers products did not appear to be directly targeted. The association cautioned that some adhesive-related goods, packaging products and steel items could still affect CASE manufacturers or their customers depending on their tariff classifications and sourcing arrangements.
CCA has been gathering company-specific cost, sourcing and operational data to support possible requests for exclusions, remission or other relief. PCI previously covered that effort in CCA Seeks CASE Impact Data Ahead of Sept. 8 Countertariffs.
Primary sources: Department of Finance Canada product schedule and CBSA Customs Notice 26-23
The implementation is relevant to PCI readers following regulations and trade policies affecting coatings, CASE materials, packaging, coated substrates and manufacturing inputs.
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