Tariffs Toolkit

Tariff Toolkit

US tariff policy is changing rapidly, and businesses should confirm the applicable US Harmonized Tariff Schedule classification and current US Customs and Border Protection requirements before shipping.The United States has undertaken a back-and-forth approach to international trade, dabbling with various tariffs of changing rates and applicability. Updates on these various tariffs and the state of bilateral trade between Canada and the US are outlined below.

As a border community, the Langley Chamber knows the importance and value of the Canada-U.S. trade relationship -- one of the most fair, successful, and deeply integrated in the world. These destructive and counter-productive tariffs imposed by the US jeopardize this relationship, hurting businesses on both sides that have spent decades working together successfully through predictable trade policies, and punishing consumers and workers in both countries.

This page holds key information for Langley businesses to understand and navigate the tariffs and their economic impact. For questions or comments on the trade dispute, or to share resources for this page, please feel free to contact us at info@langleychamber.com

Information updated August 25, 2026. US tariff policy is changing rapidly. Businesses should confirm the applicable US Harmonized Tariff Schedule classification, tariff rate, exemptions and current US Customs and Border Protection requirements before shipping.

This page is provided for general information only and does not constitute legal, customs, tax or trade advice. Businesses should not rely on it as the sole basis for shipping, pricing or other commercial decisions.

The Tariffs

Section 338: 50%Tariffs — Effective August 22, 2026

On July 20, 2026, the US President signed three proclamations imposing additional tariffs of 50% on selected Canadian products under Section 338 of the Tariff Act of 1930.

These tariffs took place at 12:01 a.m. Eastern Time on August 22, 2026.

The three proclamations were presented as responses to Canadian policies affecting US motor vehicles, alcoholic beverages and dairy products. However, the products selected for tariffs extend well beyond those three sectors. The covered lists include products ranging from wine and dairy products to hockey equipment, furniture, clothing and cement.

Unlike the temporary Section 122 tariff, the Section 338 tariffs will apply to listed products even where they qualify as originating goods under CUSMA.

The Section 338 tariffs will not apply to energy, potash, products already subject to Section 232 tariffs, fish, critical minerals and certain other excluded products.

Businesses should consult the full lists of included goods, and the related HS Codes, to confirm if 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 >

US Broad-Based 10% Tariffs

U.S. tariffs imposed under Section 122 of the Trade Act of 1974 expired on July 24, 2026. Section 122 tariffs had replaced the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in response to alleged fentanyl and border concerns by the U.S., which were ruled invalid by the U.S. Supreme Court.

To replace Section 122 tariffs, on July 24, 2026, the U.S. imposed new tariffs of 10% on imports of most goods under Section 301 of the Trade Act of 1974, including on Canada, following investigations into alleged forced labour practices in 60 countries. More >

Goods that qualify for preferential duty-free treatment under the Canada-United States-Mexico Agreement (CUSMA) continue to be exempt.

Tariffs apply to physical goods crossing the border. Services such as consulting, software subscriptions, architecture, engineering and education are not subject to tariffs.

Businesses should not assume that a product is CUSMA-compliant merely because it is shipped from Canada. The product must satisfy the applicable CUSMA rule of origin and be supported by the required certification of origin.

US Steel, Aluminum and Copper Tariffs

The United States maintains Section 232 tariffs on steel, aluminum, copper and numerous derivative products imported from Canada. There is no general CUSMA exemption from these tariffs. These tariffs extend to a number of derivative products as well. Notably, the scope of products covered is substantially larger than the scope covered in the steel and aluminum tariffs from 2018.

Exports which were not impacted by U.S. tariffs in 2018 may now be impacted. Businesses which export should check the HS tariff codes of their products against those in the Federal Register notices linked above. Many downstream products likely will be impacted (e.g. auto parts, furniture, gym equipment, agricultural equipment, construction equipment, etc.). You can also use the Tariff Finder tool to search the HS tariff code for items exporting to the US. Tariff Finder >

The tariff structure was substantially revised in April and June 2026. Depending on the product and its US tariff classification, applicable rates currently range from 10% to 50%. Since April 2026, the applicable tariff is generally assessed on the full customs value of the product rather than only on the value of its steel, aluminum or copper content.

Under the current structure:

Many primary steel, aluminum and copper products are subject to tariffs of 50%.
Many derivative products predominantly composed of covered metals are subject to tariffs of 25%.
Certain industrial machinery, power equipment and other designated derivative products are subject to different rates, generally between 15% and 25%.
Products containing less than 15% covered steel, aluminum and copper by weight are generally exempt.
Products composed of at least 85% US-origin steel, aluminum or copper may qualify for a reduced 10% rate.

Because the rules and product lists have changed several times, businesses should not rely on the original 2025 Federal Register lists alone. The current US Customs and Border Protection tariff schedule and implementation guidance should be checked for each product.

US Auto, Truck and Bus Tariffs

The United States maintains Section 232 tariffs of 25% on imported automobiles, light trucks, medium- and heavy-duty trucks and specified vehicle parts.

For CUSMA-compliant automobiles and trucks, the value of verified US content is excluded from the 25% tariff. Approval of the US-content calculation may be required on a model-by-model basis. The tariff is therefore assessed on the non-US content of a qualifying vehicle rather than automatically applying to its full value.

Non-CUSMA-compliant auto and truck parts are subject to the 25% tariff. CUSMA-compliant auto and truck parts are not currently subject to the tariff while the US Department of Commerce and US Customs and Border Protection develop a process for assessing tariffs on their non-US content.

The United States also imposes a 10% tariff on imported buses. There is no CUSMA or US-content exemption from the bus tariff.

Other US Sectoral Tariffs

Several additional Section 232 tariffs affect Canadian exports:

Softwood timber and lumber: A 10% Section 232 tariff applies to covered softwood timber and lumber products. There is no CUSMA exemption. This is separate from any applicable US anti-dumping or countervailing duties.

Furniture, cabinets and vanities: A 25% tariff applies to certain upholstered furniture, kitchen cabinets and bathroom vanities. There is no CUSMA exemption.

Semiconductors: A 25% tariff applies to a limited subset of semiconductor products and derivatives. Several exemptions exist for products used in US manufacturing, data centres, research and development and other specified domestic uses.

On July 9, 2026, the US President also directed officials to negotiate with trading partners over imports of commercial aircraft, jet engines and aircraft parts. The proclamation did not impose an immediate new aircraft tariff, although tariffs or other measures could be considered following the negotiations.

Removal of the De Minimis Tariff Exemption

On August 29, 2025, the United States suspended the duty-free de minimis exemption for commercial shipments valued at US$800 or less. The suspension applies globally, including to shipments from Canada and Mexico.

Low-value commercial shipments are no longer automatically exempt from US customs duties and tariffs. They must be properly declared and may be subject to:

ordinary most-favoured-nation customs duties;
applicable US tariffs;
customs-processing or carrier charges; and
additional documentation and clearance requirements.

With the de minimis exemption gone, every shipment from Canada into the United States is now treated like a regular import, no matter its value. Each parcel needs a full customs declaration and is assessed the applicable U.S. tariff or duty rate based on its product category. A Canadian product may still qualify for duty-free CUSMA treatment, but the result depends on the product’s origin, tariff classification, method of shipment and whether the necessary CUSMA documentation is provided, as opposed to a simple exemption based on its low-value. Read more on this impact >

Canada's Retaliatory Tariffs and Actions

Canada’s Retaliatory Tariffs - General Items

Canada imposed 25% counter-tariffs on a range of US goods in the spring of 2025. Effective September 1, 2025, Canada removed most of those counter-tariffs.

Effective September 8, 2026, Canada will impose 15, 25, and 50 per cent tariffs on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with individual product rates based on the matching U.S. rate for the same goods. See the full list of impacted items >

Canada’s Retaliatory Tariffs - Steel, Aluminum and Autos

Canada’s counter-tariffs on specified US steel and aluminum products and US-assembled automobiles remain in force.

Canada’s automobile counter-tariffs apply to:

non-CUSMA-compliant vehicles imported from the United States; and
the non-Canadian and non-Mexican content of CUSMA-compliant vehicles imported from the United States.

The remaining automobile countermeasure should not be described generally as a tariff on all US auto parts. Certain individual automotive-related products may nevertheless be covered by Canada’s steel and aluminum tariff lists.

Businesses importing US products should check the Government of Canada’s current consolidated list of tariffed products using the applicable Canadian tariff classification.

Canada’s Broader Steel Import Safeguards

Canada has also imposed measures intended to address steel trade diversion and global overcapacity. These measures are separate from Canada’s direct retaliatory tariffs against the United States.

Imports above the applicable quota are subject to a 50% surtax. Steel products originating in Canada, the United States or Mexico are exempt from these tariff-rate quotas.

Canada also applies a 25% tariff to specified steel derivative products imported from all countries, subject to listed exemptions and rules preventing multiple Canadian steel tariffs from being charged on the same product.

Exemptions, Rebates and Avoidance

CUSMA-Compliant Exemption:

The US has exempted Canadian exports from the 25% tariffs if they are 'CUSMA-compliant'. Finance Canada is interpreting ‘CUSMA-compliant’ trade based on whether companies claim CUSMA preferential treatment when exporting goods to the U.S. (i.e. by completing the necessary trade documentation for CUSMA tariff rates) and whether they meet the CUSMA rules of origin provisions. While many businesses did not bother with CUSMA paperwork, including Certificate of Origin, now is the time to transition your practice to meet these requirements so those exports can be exempt now, and possibly in the future. This may not be too burdensome as many products may already be complying with CUSMA's rules of origin requirements.

Read our blog post: "What is CUSMA-Compliant" for more information on this >

Canadian Retaliatory Tariff Exemptions:

Product-Specific Exemptions or Remissions: The Canadian government will consider requests for exemption from the tariffs on US imports (known as “remission requests”) for specific circumstances where inputs cannot be sourced domestically or from non-US sources, or where severe adverse impacts to the broader economy may occur. Send your request to fin.remissions-remises.fin@canada.ca, including "U.S. Remission" in the subject line and follow the template laid out on this page.

Duty Drawback Program: Canada’s Drawback Program refunds duties paid on imported goods once they—or products made from them—are exported or destroyed, eliminating domestic duty costs for Canadian exporters. The program grants a drawback (refund) of duties that were paid on imported goods when the imported goods are later exported as-is, or when goods are used to produce other goods for export. More info >

Duties Relief Program: The Duties Relief Program from the Canada Border Services Agency allows qualified companies to import commercial goods without paying duties, as long as those goods are eventually exported. As part of the program, companies can manufacture or use the commercial goods in a limited manner before export. More info >

Webinars, Events and Readings

The Langley Chamber will work with strategic partners to deliver and share educational and information events about the tariffs. See upcoming sessions below:

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A number of expert articles and resources are available for review and reading. A curated list of some such resources follow:

Pacific Customers Brokers - Extensive resource library including videos and FAQs
BDO - A 30-day resilience blueprint for Canadian enterprises
BDC: Resources for businesses impacted by potential U.S. tariffs
BDC The impact of potential tariffs: How to get your business ready
CENTRAL 1: Trade war games: U.S. tariff s, Canada responds
EDC: FAQs: What Canadian exporters need to know about the impact of potential U.S. tariffs
KPMG: KPMG in Canada supports Canadian businesses navigating U.S. tariffs

Trade and Tariff Data

Canada-US Trade Tracker: a new tool from the Canadian Chamber of Commerce designed to illustrate the ties between our two economies and gives you data to tell your American contacts, clients and customers why this trade war will hurt both sides

Most Tariff Exposed Cities: Read this report and tool to see which cities in Canada are most exposed to US tariffs. Langley is part of the 'Vancouver' district for this report, but likely shares many similarities with the 'Abbotsford-Mission' district which is much more potentially impacted.

Canada Tariff Finder: Quickly get tariff information for specific products and countries where Canada has a Free Trade Agreement

Pacific Customs Brokers has extensive resources on tariffs, how they work, and more. Visit PCBglobaltrade.com/tariffs >

Mitigation Strategies

Businesses should be looking into their supply chains and markets, and how they would be impacted by either export tariffs by the US or Canadian retaliatory input tariffs.

CUSMA-Compliant

CUSMA Funding and Support: The CUSMA Compliance Advisory Services Initiative supports B.C. based small and medium-sized enterprises impacted by US tariffs by facilitating access to the technical experts and advisory services they need to become CUSMA compliant. Businesses can get up to $5,000 in funding to cover up to 50% of the cost of trade services to get themselves CUSMA compliant. More information >

Other Strategies

Strategies some exporters have used include pre-loading exports into the United States during any periods of exemption to build up tariff-free inventory in the US for fulfillment after. Some others have considered developing a US subsidiary to transfer product to at a lower, transfer price before marking-up and retailing into the US from there. Some exporters to the US may also wish to explore diversifying their markets and developing trading options outside of the US altogether using the resources below.

Importers of US goods need to understand the country or origin of their inputs, and consider diversifying their supply chain to non-US suppliers, whether from other international markets or from Canadian suppliers. The Langley Business Directory is a searchable database of 1150 Langley businesses which can help you shop for supplies and inputs locally. Langley Business Directory >

Tariff Toolkit

Resources

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