Carson Blog

Carson is reminding clients to prepare ahead of Canada’s counter tariffs, which are set to take effect following the long weekend, on September 8th. The CBSA has yet to issue an official Customs Notice for the counter tariffs.

The official list of HS codes can be found here: 

https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/canadas-response-us-tariffs/complete-list-us-products-subject-to-counter-tariffs.html

If you are unsure if these tariffs will affect you, please request an impact report from us (consulting@carson.ca)

Please also review the below information on how to obtain a remission, or claim tariffs through a drawback if surtaxable goods are later exported.

Remission Relief Information for New U.S. Counter Tariffs

In advance of Canada’s upcoming retaliatory tariffs, we are encouraging clients to review the remission options available to them, including applying for an importer-specific remission where impacted goods cannot be sourced elsewhere.

Pending approval of the Governor in Council, it is the government’s intention for the new counter tariffs to benefit from remission in line with existing relief.

• Product and company-specific remission that has been implemented under the United States Surtax Remission Order will apply to the new tariff measures, in accordance with the terms of the Order.  For example, steel goods currently eligible for remission of the 25% tariff would benefit from relief of the 50% tariff. 
• In addition, the new tariff measures will be eligible for horizontal remission under the United States Surtax Remission Order covering the following goods/purposes until June 30, 2027:
  • All goods for use by identified public health, public safety and national security entities
  • Steel goods for use in auto and aerospace manufacturing
  • Non-steel goods for use in manufacturing, processing, food and beverage packaging and agricultural production in Canada
• Manufacturing and agricultural production are broadly defined as including all activities under NAICS Chapter 31-33 and NAICS Chapter 11 (including forestry, fishing and hunting).  Specifically, regarding sectors raised on the call today, inputs to fish and seafood processing, pet food manufacturing, and fishing in Canada are covered by this horizontal carve out.

For goods not already eligible for remission, the Department is continuing to accept and assess requests for remission under the U.S. Remission Framework, which provides for remission in certain circumstances, e.g., where goods used as inputs cannot be sourced domestically.

Please see below for more information:

Process for requesting remission of tariffs that apply on certain goods from the U.S. – Canada.ca.

Duty Drawback

Duty drawback also remains an option for clients who will be exporting impacted products within four years of import. Please reach out to our drawbacks team at drawbacks@carson.ca to see if your exports are eligible.

Remission Relief Information for New U.S. Counter Tariffs

In advance of Canada’s upcoming retaliatory tariffs, we are encouraging clients to review the remission options available to them, including applying for an importer-specific remission where impacted goods cannot be sourced elsewhere.

Pending approval of the Governor in Council, it is the government’s intention for the new counter tariffs to benefit from remission in line with existing relief.

• Product and company-specific remission that has been implemented under the United States Surtax Remission Order will apply to the new tariff measures, in accordance with the terms of the Order.  For example, steel goods currently eligible for remission of the 25% tariff would benefit from relief of the 50% tariff. 
• In addition, the new tariff measures will be eligible for horizontal remission under the United States Surtax Remission Order covering the following goods/purposes until June 30, 2027:
  • All goods for use by identified public health, public safety and national security entities
  • Steel goods for use in auto and aerospace manufacturing
  • Non-steel goods for use in manufacturing, processing, food and beverage packaging and agricultural production in Canada
• Manufacturing and agricultural production are broadly defined as including all activities under NAICS Chapter 31-33 and NAICS Chapter 11 (including forestry, fishing and hunting).  Specifically, regarding sectors raised on the call today, inputs to fish and seafood processing, pet food manufacturing, and fishing in Canada are covered by this horizontal carve out.  

For goods not already eligible for remission, the Department is continuing to accept and assess requests for remission under the U.S. Remission Framework, which provides for remission in certain circumstances, e.g., where goods used as inputs cannot be sourced domestically.

Please see below for more information:

Process for requesting remission of tariffs that apply on certain goods from the U.S. – Canada.ca.

Duty Drawback

Duty drawback also remains an option for clients who will be exporting impacted goods from Canada within four years of import. Please reach out to our drawbacks team at drawbacks@carson.ca to see if your exports are eligible.

Impact Reports Now Available For Retaliatory Tariffs

Please reach out to our consulting inbox (consulting@carson.ca) for an impact report to see how Canada’s upcoming Sept. 8th retaliatory tariffs could impact your business (based on prior activity).

The Government of Canada has announced its response to the U.S. Section 338 tariffs and released information on both the proposed counter-tariff measures and support programs for Canadian workers and businesses affected by the tariffs.

The list of products is available below and is set to take effect on September 8, 2026

• List of products from the United States subject to counter-tariffs effective September 8, 2026:
  View the product list
• Support for Canadian workers and businesses affected by U.S. tariffs: View the support measures

MPF Increase Effective October 1, 2026

CBP has published its annual inflation adjustment to customs user fees for fiscal year 2027. Effective October 1, 2026, the Merchandise Processing Fee (MPF) will increase as follows:

• Ad valorem rate: unchanged at 0.3464%
• Minimum formal MPF: $33.58 to $34.58
• Maximum formal MPF: $651.50 to $670.86
• Informal Entry/Release (automated):$2.77

Other user fees are also adjusting, including the dutiable mail fee ($7.61), express consignment carrier fee ($1.38 per bill), commercial truck arrival fee ($7.60), and permit fee ($190.88)

See here for more details: https://www.federalregister.gov/documents/2026/07/31/2026-15530/customs-user-fees-to-be-adjusted-for-inflation-in-fiscal-year-2027

Following the enactment of section 338 tariffs on Canadian origin goods, PM Mark Carney of Canada provided an update and announced that retaliatory tariffs on U.S. origin goods will arrive in September. 

No official details of the tariffs have been released, but according to PM Carney’s announcement sectors such as U.S. steel, dairy, appliances, agricultural equipment, pulp and paper, electronics will be targeted with “dollar for dollar” tariffs

Please read here for more details: 

https://www.pm.gc.ca/en/news/speeches/2026/08/22/prime-minister-carney-delivers-remarks-canada-us-trade-negotiations

CBP Guidance Issued for Section 338 Tariffs on Canadian Origin Good

U.S. Customs has issued their formal guidance on how the new section 338 tariffs apply on Canadian goods. You can find the full details, including impacted HS codes and chapter 99 details, here.

What Section 338 means for your shipments to the USA:

• CUSMA/USMCA does not exempt these duties.
• Duties stack. The new 50% is charged on top of the regular duty owed, with an exemption for goods already subject to section 232 (steel/aluminum tariffs)
• Advance duty payment may be required for entries on or after August 21. Late payment risks interest, cargo holds, mandatory cash payment, and other CBP action.
• Shipments may face delays.

The three-day pause has expired. Effective 9:01 p.m. PST Friday, Aug. 21 (12:01 a.m. ET Saturday, Aug. 22), the 50% Section 338 tariffs on certain Canadian-origin goods are in effect.

The additional ad valorem duties imposed in Proclamations 11046, 11047, and 11048 took effect at 12:01 a.m. ET on Saturday, Aug. 22. Canadian-origin goods classified under the covered provisions are now subject to the additional 50% duty at the time of entry.

What this means for your shipments:

• CUSMA/USMCA does not exempt these duties.
• Duties stack. The new 50% is charged on top of the regular duty owed.
• Confirm crossing times with your carrier.
• Advance duty payment may be required for entries on or after August 21. Late payment risks interest, cargo holds, mandatory cash payment, and other CBP action.
• Shipments may face delays.

Please work with your trucking partners and carriers if you wish to reschedule any importations to the US at this time.

President Trump announced yesterday evening, Aug. 18, that he would pause the 50% Section 338 tariffs on an array of Canadian products for three days as the U.S. and Canada continue their trade negotiations. The tariffs were initially scheduled to take effect this Wednesday, Aug. 19, at 12:01 a.m. ET.

“After considering the information, opinions, and recommendations that have been provided to me by senior executive branch officials, among other relevant information and considerations, I determine that in these circumstances, the public interest requires suspending for a period of 3 days the additional ad valorem duties imposed in Proclamation 11046, 11047, and 11048,” the president said. 

The presidential action states the effective date of the additional ad valorem duties imposed in Proclamations 11046, 11047, and 11048 shall now be 12:01 a.m. ET on Aug. 22

Sparing a last minute deal, a new 50% tariff on certain products of Canada is set to take effect tonight. Talks between Ottawa and Washington are ongoing, but as of this bulletin no delay, suspension, or carve-out has been announced.

Scope of the New 338 Tariffs

Please review the annexes below to determine if the tariffs will impact you:

• Dairy proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy”: Annex I | Annex II
• Alcoholic beverages proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages”: Annex I | Annex II
• Motor vehicles proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles”: Annex I | Annex II

Key points

The entry date matters. The 50% duty applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on August 19 — not the date of shipment, order, or border crossing. No in-transit exemption has been announced.

CUSMA/USMCA does not exempt covered goods. The 50% duty applies regardless of CUSMA eligibility. Goods that currently enter duty-free under a valid CUSMA claim will still owe the additional 50%. A valid CUSMA (or TPL for some apparel products) is still required to avoid regular duty.

The duty stacks. The new rate is charged in addition to the duty otherwise owed under the regular HTS subheading, along with any other applicable duties, taxes, and fees.

Narrow exclusions. Energy products, potash, fish, and critical minerals are excluded, as are articles already subject to Section 232 duties (such as steel, aluminum, copper, automobiles and parts, and lumber), which continue to pay their existing Section 232 rates instead.

Please contact Carson for assistance

This is a reminder that the new Section 338 tariffs take effect at 12:01 a.m. ET on Wednesday, August 19, 2026

On July 20, President Trump issued three proclamations invoking Section 338 of the Tariff Act of 1930, each imposing an additional ad valorem duty of 50% on certain products of Canada. While the three proclamations are framed as responses to Canadian measures on dairy, alcoholic beverages, and motor vehicles, the actual product coverage is much broader — spanning wood products, plastics, paper and packaging, furniture, apparel, electronics, sporting goods, cosmetics, and more. The annexes to each proclamation list the specific HTS numbers subject to the new 50% duty:

• Dairy proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy”: Annex I | Annex II
• Alcoholic beverages proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages”: Annex I | Annex II
• Motor vehicles proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles”: Annex I | Annex II

Key points to keep in mind before August 19

The entry date matters. The 50% duty applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on August 19 — not the date of shipment, order, or border crossing. No in-transit exemption has been announced.

CUSMA/USMCA does not exempt covered goods. The 50% duty applies regardless of CUSMA eligibility. Goods that currently enter duty-free under a valid CUSMA claim will still owe the additional 50%. A valid CUSMA (or TPL for some apparel products) is still required to avoid regular duty.

The duty stacks. The new rate is charged in addition to the duty otherwise owed under the regular HTS subheading, along with any other applicable duties, taxes, and fees.

Narrow exclusions only. Energy products, potash, fish, and critical minerals are excluded, as are articles already subject to Section 232 duties (such as steel, aluminum, copper, automobiles and parts, and lumber), which continue to pay their existing Section 232 rates instead.

Please contact Carson for assistance

Canada: 25% Provisional Surtax on Wood Cabinets and Vanities

Canada is applying a 25% provisional safeguard surtax on imports of wood cabinets and vanities (and their subassemblies) intended for permanent installation, for a period of up to 200 days.

Goods originating in the United States, Mexico, Chile, and Israel, along with listed developing countries, are exempt, as are goods in transit to Canada on the effective date, freestanding furniture not designed for permanent installation, and certain wall-mounted medicine cabinets.

See here for more information: https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn26-17-eng.html

U.S.: Section 232 Tariffs and Minimum Import Prices on Polysilicon

By proclamation dated August 6, 2026, the U.S. will impose a 15% ad valorem Section 232 tariff on imports of polysilicon and downstream derivatives — including ingots, wafers, solar cells, and solar modules — effective December 4, 2026. The UK rate is 10%, and for the EU, Japan, South Korea, Taiwan, Switzerland, and Liechtenstein the combined Section 232 and MFN duty is capped at 15%.

Notably, the action also introduces minimum import prices (MIPs); otherwise, additional duties equal to the shortfall apply. Please see below for more details.

https://www.whitehouse.gov/presidential-actions/2026/08/adjusting-imports-of-polysilicon-and-its-derivatives-into-the-united-states

U.S.: Proposed Section 232 Duties on Additional Aluminum, Steel, and Copper Products

On August 6, 2026, a Federal Register notice proposing to add 14 categories of derivative articles to the Section 232 duties on aluminum, steel, and copper. The proposed list includes aluminum powder, electric conductor cables, fire extinguishers, heat exchanger and welding machine parts, floor safes, mobile cranes and lifting equipment, tanker/agricultural/other trailers, brass-wind musical instruments, and steel containers filled with propane, oxygen, or propylene.

Most articles would face a 25% duty, with agricultural trailers proposed at 15% and filled steel containers at 50% (applied to the value of the metal container only). Comments are due August 27, 2026 with no set date for potential implementation.

See here for more information: https://www.federalregister.gov/documents/2026/08/06/2026-15961/request-for-public-comments-on-the-proposed-implementation-of-duties-on-additional-aluminum-steel

FDA Reminder: VQIP Applications for FY2027 Close September 1, 2026

The FDA is reminding food importers that the application window for the Voluntary Qualified Importer Program (VQIP) for fiscal year 2027 benefits closes on September 1, 2026. VQIP is a fee-based program that expedites the review and importation of human and animal foods into the U.S. for importers who demonstrate control over the safety and security of their supply chains, with benefits beginning October 1, 2026.

Before applying, importers should confirm their eligibility and ensure all foreign suppliers of foods to be imported under VQIP hold valid facility certifications issued by a certification body accredited under FDA’s Accredited Third-Party Certification Program. Applying early is encouraged to allow sufficient time for review and fee processing.

See here for more information: https://www.fda.gov/food/importing-food-products-united-states/voluntary-qualified-importer-program-vqip

The Office of the U.S. Trade Representative announced on the evening of Wednesday, July 23, that it is moving ahead with Section 301 tariffs of 10% to 12.5% on goods from 60 countries (including Canada), effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Friday, July 24.

Canadian Goods Are Subject but CUSMA-qualifying Goods Are Exempt

Canadian goods face the lower 10% rate (heading 9903.05.29) because Canada has adopted a forced labour import ban, though USTR found Canada “has failed to effectively enforce” it. Critically, under heading 9903.05.93, the 301 duty does not apply to products of Canada entered free of duty under CUSMA/USMCA.

Rates by country: 10% applies to countries with a forced labor import prohibition or reciprocal-trade commitment (including Canada, Mexico, the UK, India, and others); 12.5% applies to countries without one (including China, Brazil, Vietnam, Australia, and others). For the EU, Japan, Korea, Taiwan, and Switzerland, the tariff works as a top-up: goods whose regular MFN rate already meets the threshold (10% for the EU and Taiwan; 12.5% for Japan, Korea, and Switzerland) face no additional duty, while lower-duty goods are brought up to that combined rate.

The new tariff applies to all products, with few exceptions:

• In-transit goods (9903.05.85): loaded on a vessel and in transit on the final mode of transport before 12:01 a.m. ET July 24, and entered before 12:01 a.m. ET July 28.
• HTS exemption list (9903.05.86) — roughly four pages of subheadings applying to all 60 countries, concentrated in: beef and offal; fresh and dried produce, pulses, nuts, coffee, tea, spices, cocoa, sugar, and certain juices and preparations; minerals, ores, and concentrates; coal, petroleum, natural gas, and electrical energy; fertilizers; inorganic and organic chemicals, including rare earths; vitamins, hormones, antibiotics, and medicaments (Chs. 29–30); natural rubber; certain wood products; precious metals including gold and platinum; ferroalloys and base metals (copper, nickel, cobalt, aluminum, zinc, tin, tungsten, and others); computers and parts (8471, 8473); smartphones and network equipment (8517); semiconductors and integrated circuits (8541–8542); and artworks and antiques (Ch. 97).
• Specified articles (9903.05.87): a short list of 16 items including seeds for sowing, frozen tropical fruit, açaí and coconut water products, and certain religious-use goods.
• Civil aircraft, engines, parts, and ground flight simulators (9903.05.88).
• Articles for pharmaceutical applications (9903.05.89).
• Goods already subject to Section 232 tariffs (9903.05.90): steel, aluminum, copper and derivatives; passenger vehicles and light trucks and their parts; medium- and heavy-duty vehicles and parts; wood products; and semiconductor articles.
• Donations and informational materials (9903.05.91–.92).
• CUSMA duty-free goods of Canada (9903.05.93) and USMCA duty-free goods of Mexico (9903.05.94), plus country-specific exemptions for the UK, EU, Switzerland, Taiwan, Malaysia, and several others, and CAFTA-DR duty-free textiles and apparel from six Central American/Caribbean countries (9903.05.95).
• Chapter 98 entries are exempt, except that duties apply to the value of repairs, alterations, or processing under 9802.00.40/.50/.60 and to the assembled value less U.S. content under 9802.00.80.

The full HTS exemption list is in the CBP attachment, and the complete action is set out in the Federal Register notice. Please reach out to Carson with questions.

Please reach out to Carson for assistance