{"id":101043,"date":"2026-09-04T11:12:42","date_gmt":"2026-09-04T16:12:42","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=101043"},"modified":"2026-09-04T11:12:43","modified_gmt":"2026-09-04T16:12:43","slug":"canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/en-ca\/blog\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\/","title":{"rendered":"Canada&#8217;s New Counter-Tariffs on U.S. Goods: What Shippers Need to Know"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If you ship U.S.-origin goods to Canadian customers, something significant is changing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Canada&#8217;s new counter-tariffs on U.S. products take effect September 8, 2026. They cover nearly 900 specific tariff line items across categories that include apparel, electronics, cosmetics, furniture, toys, and packaging materials\u2014at rates of 15%, 25%, or 50%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses with cross-border operations should understand happened, what&#8217;s affected, and what you should be doing right now.<\/p>\n\n\n\n<h2 id=\"h-what-happened\" class=\"wp-block-heading\">What happened<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">On August 22, 2026, new U.S. Section 338 tariffs of up to 50% took effect on a wide range of Canadian goods. Three days later, on August 25, the Government of Canada announced it would match the U.S. tariffs dollar-for-dollar on U.S.-origin goods imported into Canada.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The result: effective September 8, Canada is imposing counter-tariffs at a rate on each product that corresponds directly to the U.S. tariff rate applied to the equivalent Canadian good.<\/p>\n\n\n\n<h2 id=\"h-which-products-are-affected\" class=\"wp-block-heading\">Which products are affected<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The tariffs apply to U.S.-origin goods classified under specific Harmonized System (HS) codes, which you can find them using official tools like the <a href=\"https:\/\/hts.usitc.gov\/search\">USITC HTS Search Tool<\/a>. Canada&#8217;s Department of Finance has published the <a href=\"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\">complete list of U.S. products subject to counter tariffs<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For ecommerce sellers, the categories most likely to show up in your product catalog include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At 50%: Apparel, cosmetics and beauty products, electronics, furniture and lighting, toys, sporting equipment, and packaging materials.<\/li>\n\n\n\n<li>At 25%: Larger appliances, carpets and textile floor coverings, cheese and dairy products.<\/li>\n\n\n\n<li>At 15%: Agricultural machinery parts<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The rates are assigned at the specific tariff item level, not the category level. Two products that look nearly identical can land in different rate brackets depending on their exact HS code classification.<\/p>\n\n\n\n<h2 id=\"h-three-things-that-might-surprise-you\" class=\"wp-block-heading\">Three things that might surprise you<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>USMCA\/CUSMA won&#8217;t protect you<\/strong>. In past tariff rounds, goods qualifying for preferential treatment under the Canada\u2013United States\u2013Mexico Agreement (CUSMA) were often exempt. Not here. Canada&#8217;s counter-tariffs apply regardless of CUSMA eligibility, and the same is true of the U.S. Section 338 tariffs that triggered this response. If you&#8217;ve been assuming your trade agreement paperwork provides a shield, verify that before September 8.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>De minimis doesn&#8217;t apply<\/strong>. Canada&#8217;s $150 CAD duty-free threshold applies to the value of a shipment, not to tariff classification. These counter-tariffs are assessed based on a product classification under the HS code system\u2014which means low-value parcels get hit just like any other shipment. There&#8217;s no minimum order value that allows you to avoid the rate increase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>In-transit goods are exempt, but you need documentation<\/strong>. If your goods are already physically in transit to Canada when the tariffs take effect at 12:01 a.m. on September 8, they&#8217;re not subject to the new duties. Keep your shipment documentation to establish that status. Goods that are in a warehouse or not yet shipped don&#8217;t qualify for the exemption.<\/p>\n\n\n\n<h2 id=\"h-what-this-means-for-your-cross-border-operation\" class=\"wp-block-heading\">What this means for your cross-border operation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most direct impact is on landed cost\u2014the total cost to get a product to a Canadian customer. If you ship a $40 t-shirt from the U.S. to Canada and it falls under the 50% counter-tariff, that&#8217;s $20 in additional duties on a single item.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That calculation leads to two decisions most sellers will need to make.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first is the Delivery Duty Paid (DDP) vs. Delivery Duty Unpaid (DDU) question. Under DDP, you collect duties at checkout and cover them on behalf of the customer. The customer pays the full landed cost upfront, and their package arrives with no surprise fees. Under DDU, the carrier collects from the customer at delivery. In a high-tariff environment, DDU can create friction: customers who weren&#8217;t expecting a duty bill at the door often refuse packages or request returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ShipStation&#8217;s Guaranteed Prepaid Duties and Taxes feature takes DDP a step further. Available on UPS, FedEx, and DHL Express shipments from ShipStation, it calculates and pays duties and taxes at the same time you create the label. ShipStation handles remittance to customs authorities on your behalf. The amount shown at label creation is final: no post-shipment adjustment, no reconciliation surprise. For U.S.-based accounts, this setting is on by default under International Settings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There&#8217;s also a direct connection to HS code accuracy here: the guarantee only applies when your item data is correct. If an HS code is wrong and customs assesses a different rate at the border, ShipStation can issue a correction charge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second decision is pricing. Do you absorb the additional duty cost, pass it through to Canadian customers, adjust your Canadian pricing to reflect the new landed cost baseline, or pause sales of affected products into Canada while you figure out the math? The answer depends on your margins, your Canadian customer volume, and how price-sensitive that segment is. But it&#8217;s a decision that needs to be made deliberately, not discovered mid-order.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HS code accuracy matters more now than ever. Because tariff rates under this new list vary significantly by exact tariff item classification, a product that&#8217;s been loosely coded may end up in the wrong rate bracket\u2014either overpaying or creating a compliance problem. If your catalog uses approximate or inherited HS codes, now is the time to verify them.<\/p>\n\n\n\n<h2 id=\"h-what-to-do-before-september-8\" class=\"wp-block-heading\">What to do before September 8<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are concrete steps worth taking before the tariffs kick in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Audit your Canada-bound products against the official list. Pull the <a href=\"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\">Canadian Department of Finance&#8217;s complete list<\/a>, and match your products against their specific tariff item numbers. Don&#8217;t go off category names alone\u2014look up the actual <a href=\"https:\/\/hts.usitc.gov\/search\">HS code<\/a>, and verify your code assignment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ensure that you are correctly assigning &#8220;Country of Origin&#8221; to your products. Generally speaking, goods originate from the identified country in which they are manufactured or produced, not just where the product was shipped from (<a href=\"https:\/\/www.cbsa-asfc.gc.ca\/import\/guide-eng.html\">Guide to importing commercial goods into Canada<\/a>). This is more important than ever, as mistakenly listing a product with a US origin will subject it to higher duties than should be applicable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Previously, ShipStation defaulted Country of Origin to &#8220;United States&#8221; unless you changed it. Now, this field will only automatically populate if saved as a product or account setting. It\u2019s important to setup your own defaults and review your <a href=\"https:\/\/help.shipstation.com\/hc\/en-us\/articles\/360029962851-Product-Defaults\">Product Defaults<\/a> to save time and ensure accuracy during shipment configuration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Review shipments currently in transit. Document the in-transit status of any shipments expected to arrive in Canada around September 8. Keep your shipping records and bill of lading accessible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Revisit your duty collection approach for affected categories. If you&#8217;re currently shipping DDU into Canada for products that will now carry a higher duty, talk to your shipping or fulfillment provider about DDP options.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adjust your pricing or product visibility on affected Canada-facing listings. If you need to update Canadian storefront pricing or temporarily restrict certain products from Canadian checkout, do it before the tariffs take effect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.shipstation.com\/fulfillment\/shipping\/international\/\">ShipStation&#8217;s international shipping tools<\/a> can help with the documentation and customs data side\u2014accurate commodity descriptions, HS code fields, and customs form automation are all part of the label creation process. If you&#8217;re managing a high volume of cross-border orders, getting that data right at the point of label creation is the most reliable way to avoid reclassification issues down the line.<\/p>\n\n\n\n<h2 id=\"h-the-bottom-line\" class=\"wp-block-heading\">The bottom line<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Canada&#8217;s counter-tariffs are a significant shift for any business shipping U.S.-origin goods across the border. The rates are high, the exemptions most sellers assumed would apply don&#8217;t, and the effective date is Monday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This post reflects information available as of September 3, 2026. Trade policy in this area is evolving rapidly. Verify details against official Canadian government sources before making business decisions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada&#8217;s new counter-tariffs on U.S.-origin goods take effect September 8, 2026\u2014covering hundreds of items across multiple product categories. Here&#8217;s what the change means for businesses shipping cross-border, and what to do now.<\/p>\n","protected":false},"author":184,"featured_media":101045,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13097],"tags":[13108,13099],"class_list":["post-101043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shipping-fulfillment","tag-international-shipping","tag-shipping-costs"],"acf":{"shipstation_product_type":["shipstation"],"shipstation_features":"","shipstation_company_size":"","shipstation_industry":"","shipstation_funnel_stage":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.3 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Canada&#039;s New Counter-Tariffs on U.S. Goods: What Shippers Need to Know - ShipStation<\/title>\n<meta name=\"description\" content=\"Canada&#039;s counter-tariffs on U.S. goods hit September 8. See which product categories are affected and what cross-border shippers should do now.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipstation.com\/blog\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada&#039;s New Counter-Tariffs on U.S. Goods: What Shippers Need to Know\" \/>\n<meta property=\"og:description\" content=\"Canada&#039;s counter-tariffs on U.S. goods hit September 8. See which product categories are affected and what cross-border shippers should do now.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shipstation.com\/blog\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"ShipStation\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ShipStation\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-09-04T16:12:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-04T16:12:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.shipstation.com\/wp-content\/uploads\/2026\/09\/shipstation-blog-thumbail-canada-counter-tariffs.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Todd Greenbaum\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@shipstation\" \/>\n<meta name=\"twitter:site\" content=\"@shipstation\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Greenbaum\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/\"},\"author\":{\"name\":\"Todd Greenbaum\",\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/#\\\/schema\\\/person\\\/5732117106a30e5c0d3f0f38c4c3e0f7\"},\"headline\":\"Canada&#8217;s New Counter-Tariffs on U.S. Goods: What Shippers Need to Know\",\"datePublished\":\"2026-09-04T16:12:42+00:00\",\"dateModified\":\"2026-09-04T16:12:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/\"},\"wordCount\":1278,\"publisher\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipstation.com\\\/wp-content\\\/uploads\\\/2026\\\/09\\\/shipstation-blog-thumbail-canada-counter-tariffs.webp\",\"keywords\":[\"International shipping\",\"Shipping costs\"],\"articleSection\":[\"Shipping &amp; Fulfillment\"],\"inLanguage\":\"en-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/\",\"url\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/\",\"name\":\"Canada's New Counter-Tariffs on U.S. Goods: What Shippers Need to Know - ShipStation\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.shipstation.com\\\/blog\\\/canadas-new-counter-tariffs-on-u-s-goods-what-shippers-need-to-know\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.shipstation.com\\\/wp-content\\\/uploads\\\/2026\\\/09\\\/shipstation-blog-thumbail-canada-counter-tariffs.webp\",\"datePublished\":\"2026-09-04T16:12:42+00:00\",\"dateModified\":\"2026-09-04T16:12:43+00:00\",\"description\":\"Canada's counter-tariffs on U.S. goods hit September 8. 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