Langley businesses exporting to the US should review their product exposure now that new 50% US tariffs have taken effect on a range of Canadian goods.

The tariffs took effect at 12:01 a.m. Eastern Time on August 22 and apply to certain Canadian products connected to three separate US trade actions concerning dairy, alcoholic beverages, and motor vehicles. These tariffs are additional duties, meaning they stack on top of any tariffs, fees, or charges that already apply.

Importantly, these Section 338 tariffs apply to impacted goods regardless of whether a good otherwise qualifies under the US-Mexico-Canada Agreement, known in Canada as CUSMA.

For businesses, the most important message is this: do not assume you are unaffected based on the title of the tariff action. For example, while one proclamation relates to motor vehicles, the covered product list extends well beyond cars to include a broad range of Canadian goods across sectors such as agriculture, wood and paper products, textiles, furniture, electronics, building materials, machinery, and more.

What is Impacted

Businesses should consult the full lists of included goods, and the related HS Codes, to confirm whether their products are included:
List 1 - largest list of various items >
List 2 - mainly dairy and dairy items >
List 3 - alcohol, paper/packing, hockey equipment >

Impacted items include:

• Dairy: milk and cream powders, whey products, milk protein concentrates, casein, lactose, and other dairy-derived ingredients, including bulk dairy ingredients used in food manufacturing, baking, and beverages
• Alcohol: beer, wine, cider, vermouth, and many spirits, including whiskey, vodka, rum, gin, tequila, and brandy
• Wood products: densified wood, wooden tableware and kitchenware, wood marquetry/inlay and furniture ornaments, bamboo skewers and drink-mixing sticks, bamboo fencing, basketwork/wickerwork items, and kraft, greaseproof, and coated paper
• Agriculture and horticulture: honey, cut flowers, bulbs, seeds, hops, and mint
• Hides, furs, and animal products: raw hides and skins, furskins, feathers/down, and gelatin
• Chemicals and essential oils: citrus, mint, and eucalyptus oils; perfumes; and industrial fatty acids
• Wood and paper products: plywood, particleboard, MDF, wood doors and frames, various paper and paperboard grades, envelopes, and cartons
• Textiles and apparel: yarn and fabric, sweaters, dresses, jackets, track suits, gloves, curtains, and tarps
• Cement and building materials: Portland cement, plaster, and concrete articles
• Electronics and machinery: smartphones, semiconductors, TV cameras, radar equipment, monitors, packaging/bottling and brewery machinery, and refrigeration equipment
• Furniture and lighting: metal and wood furniture, seating, and LED light fixtures
• Sporting goods and toys: golf equipment, ice skates, swimming pools, fishing rods, video game consoles, toys, and Christmas ornaments
• Jewelry, art, and collectibles: silver and gold jewelry, paintings, sculptures, antiques, and stamp and coin collections
• Vessels and motorcycles: boats, floating docks, and motorcycles over 800cc

What This Mean For Businesses

These tariffs represent another significant escalation in Canada-US trade uncertainty.

For exporters, they may mean higher costs, reduced competitiveness in the US market, disrupted contracts, delayed orders, or pressure from US customers to absorb part of the added cost. For businesses that do not export directly, the impact may still be felt through suppliers, customers, input costs, or broader uncertainty in North American supply chains.  We also know that counter-tariffs on US imports are planned for September 8, which will increase costs on businesses who use those as inputs. 

This is especially concerning for communities like Langley, where 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 oppose measures that undermine stable, rules-based trade between Canada and the US. Tariffs increase costs for businesses and consumers on both sides of the border, create uncertainty for investment, and make it harder for companies to plan, hire, and grow.  The Langley Chamber continues to engage with government and the Canadian Chamber of Commerce on this file, and is encouraging a negotiated end to the trade dispute.

What Businesses Should Do Now

Businesses that export to the US should review their products against the relevant tariff lists and confirm the applicable HS or HTS codes with a customs broker or trade advisor. Companies should also:

• Confirm whether any products are covered by the new tariff lists
• Review existing contracts for tariff, pricing, currency, and change-of-law provisions
• Speak with US customers about pricing, delivery, or contract impacts
• Identify exposure through suppliers or inputs
• Document increased costs, delayed sales, cancelled orders, or lost opportunities

Businesses should not make major supply-chain decisions based on headlines alone. The product lists are technical, and the impacts will depend on specific classifications, customers, contracts, and supply-chain relationships.  At the same time, this is another reminder of the importance of deepening trade relationships beyond the US, including within Canada and in other international markets. The US will remain Canada’s most important trading partner, but businesses need more options, more certainty, and stronger support to compete globally.

The Langley Chamber's Role

The Greater Langley Chamber of Commerce will continue raising business concerns with government and our Chamber network partners.

We are also asking affected businesses to share direct feedback with us. If these tariffs are affecting your exports, customers, costs, contracts, investment plans, or supply chains, we want to hear from you. We are also interested in your suggestions on what types of government supports, programs, or responses would be most helpful for businesses dealing with these impacts.  Contact us > 

The Chamber has a direct link into the Prime Minister’s Advisory Council on Canada-US Trade Relations and can provide input based on what we are hearing from Langley businesses. Real examples from businesses are important as we advocate for a negotiated end to the trade dispute and a more stable, competitive trade environment.

The Chamber has also updated our Tariff Toolkit with additional resources to help businesses assess potential exposure and prepare.

Members with specific tariff questions should speak directly with a customs broker, trade lawyer, or qualified trade advisor to confirm how the new measures apply to their products.