New US Tariff Escalation Expands Pressure on Canadian Exporters
New US Tariff Escalation Expands Pressure on Canadian Exporters
The US has announced another major escalation in its trade action against Canada, expanding the list of Canadian goods facing 50% tariffs and introducing new import bans on selected Canadian products.
For Langley businesses that sell into the US, the message is straightforward: the scope of the trade action has expanded, it reaches well beyond the product categories named in the original proclamations, and the first new deadline is only days away. Businesses exporting to the US should review their product classifications, speak with their customs broker or trade advisor, and confirm whether any of their products are affected.
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How we got here
On July 20, the US President signed three proclamations under Section 338 of the Tariff Act of 1930 imposing additional 50% tariffs on selected Canadian goods connected to three separate trade actions involving alcoholic beverages, dairy, and motor vehicles. The latest September 8 proclamations escalate the dispute further. The US has now expanded the list of products subject to the 50% tariff and announced import bans on certain Canadian products.
Expanded 50% tariff lists take effect September 15
Two of the new proclamations modify the scope of the existing 50% duties — one connected to the motor-vehicle action and one connected to the alcoholic-beverages action. While some products have been removed, many others have been added. The result is a broader list of Canadian goods that may now face the additional 50% tariff when entering the US.
Importantly, businesses should not rely on the title of the proclamation to determine whether they are affected. Products added under these actions go well beyond motor vehicles or alcoholic beverages. Newly affected goods include items such as cheese, paper products, structural steel and aluminum, furniture, mattresses, lamps, hides and leather, small watercraft, and other products.
That means businesses that do not see themselves as part of the “auto” or “alcohol” sectors may still be caught by the expanded lists. These tariff-list changes are scheduled to take effect September 15, 2026
Expanded Tariff List - Paper, Aluminum, Furniture, More >
Expanded Tariff List - Cheese, Boats, More >
Import bans take effect September 29
Three additional proclamations move beyond tariffs and impose import bans on selected Canadian products. This means those listed products will not be allowed to enter the US market. The bans are scheduled to take effect September 29, 2026.
The import bans cover selected products connected to alcoholic beverages, dairy, and motor vehicles. Based on the official notices, the alcohol-related ban is broad and includes many beer, wine, cider, spirits, and other beverage products. The dairy-related ban is narrower and includes certain products such as whey, molasses, and non-alcoholic beer. The motor-vehicle-related ban is focused on motorcycles with engines over 800cc.
Products already in transit may be treated differently depending on when they are imported and entered for US consumption, so affected businesses should speak with a customs broker as soon as possible.
Alcoholic Beverages Ban List >
Dairy, Whey Ban List >
Motorcycles over 800cc Ban List >
Check your product code, not the headline
The most important step for businesses is to check their specific tariff classification. These measures are based on Harmonized Tariff Schedule codes. The title of a proclamation does not necessarily tell you whether your product is included. A product may be listed under an action that does not appear, at first glance, to match your sector.
Businesses should review the official annexes, confirm their HTS codes, and speak with a qualified customs broker or trade advisor before making decisions.
CUSMA does not exempt covered goods
Businesses should also understand that CUSMA compliance does not appear to exempt goods from these Section 338 duties or bans.
In other words, even if a product would normally qualify for preferential treatment under CUSMA, it may still be affected if it appears on one of the Section 338 lists.
The duties also apply in addition to other applicable tariffs, including Section 232 tariffs on products such as steel, aluminum, and autos. In some cases, a shipment could face more than one tariff measure.
What businesses should do now
With the expanded tariff lists taking effect September 15 and the import bans following September 29, affected exporters have very little time.
Businesses that ship goods to the US should:
* confirm the HTS codes for every product they export;
* check those codes against the official tariff and import-ban annexes;
* consider expediting shipments ahead of date for tariffs or bans
* speak with a customs broker or trade advisor about any affected products;
* review contracts for tariff, pricing, delivery, currency, and change-of-law provisions;
* assess shipments already in transit or scheduled before September 29;
* speak with US customers about pricing, delivery, and contract impacts; and
* document cost increases, delayed orders, cancelled sales, or other business impacts.
Businesses should not make major supply-chain or pricing decisions based on headlines alone. The product lists are technical, and the impact will depend on the specific product classification, customer, contract, and shipment timing.
The Chamber’s role
The Greater Langley Chamber of Commerce continues to oppose tariffs and other measures that undermine stable, rules-based trade between Canada and the US.
Tariffs and import bans increase costs, disrupt customers and suppliers, create uncertainty for investment, and make it harder for businesses to plan, hire, and grow. This is especially concerning for communities like Langley, where many businesses are connected to the US market through manufacturing, agriculture, food processing, transportation, logistics, construction materials, professional services, and industrial supply chains.
The Chamber continues to raise these concerns through government engagement, media commentary, and the Canadian Chamber network. We continue to encourage a negotiated resolution that ends the uncertainty and restores more predictable trade conditions for businesses on both sides of the border.
We have also updated our Tariff Toolkit with this latest information >