Canada’s new counter-tariffs on certain U.S.-origin goods took effect at 12:01 a.m. on September 8, 2026. The measures apply tariffs of 15%, 25% or 50% across 874 tariff lines covering $27.6 billion in U.S. imports. If your business imports affected U.S. goods, review your import costs and GST records now that the new tariffs are in effect.
Goods already moving to Canada before 12:01 a.m. on September 8 are generally exempt from the new tariff. Confirm this with your customs broker.
The New Tariffs Cover a Wide Range of U.S. Goods
The counter-tariffs apply to U.S.-origin products, including steel, aluminum, appliances, furniture, apparel, dairy, and electronics. The rate depends on the specific product and its tariff classification.
Finance Canada published the final product list on August 25. Importers should check the list against the goods they bring into Canada from the U.S. The applicable rate cannot be determined from a broad product category alone.
If you import these products often, the higher tariff raises the cost of bringing them into Canada. That affects your landed costs and can also change your margin on what you sell to Canadian customers.
Higher Import Costs Affect GST Calculations
The counter-tariff is separate from GST. But under CBSA’s surtax notice, customs duties and other duties on the shipment are included in the value used to calculate GST.
For example, if a shipment has a value for duty of $10,000 and a 25% counter-tariff applies, the tariff adds $2,500 to the import cost. GST is then calculated using the applicable value for tax, which includes the duty.
A GST-registered business can generally claim the GST it pays on imports as an input tax credit, if it meets the requirements. The business still needs proper customs documents and accounting records to support the claim.
This makes accurate bookkeeping important for businesses affected by the new tariffs. Record the tariff, the import GST, and the cost of the goods correctly. That gives you an accurate view of your inventory costs, tax position, and cash flow.
What Importers Should Review Now
Businesses importing affected U.S. goods should review:
- Product tariff classifications and applicable rates
- Customs and import documentation
- Landed-cost calculations
- GST paid at import
- Input tax credit records
- Inventory costs and profit margins
- Cash-flow forecasts for upcoming shipments
Updating your bookkeeping records before the next affected shipment helps keep import costs and GST records accurate. Legend Fusions provides GST/HST/PST filing, bookkeeping and cloud accounting, and virtual CFO services for Canadian businesses.
If your business imports goods from the U.S., review your records now. That can help you account for the new costs correctly.
Jeffrey Ross
Jeffrey Ross is an experienced tax accountant focused on US-Canada cross-border taxation, with over three years in the industry, including a key role as client manager at a Canadian tax firm. He provides expertise in corporate and personal tax planning, specializing in non-resident tax, capital gains, CRA and IRS compliance, and retirement planning. Known for his personalized approach, Jeffrey is dedicated to guiding clients with clear, practical advice tailored to complex tax scenarios, aligned with the evolving tax laws.