U.S.-Canada Trade War Escalates with Import Ban Announcement

The U.S.-Canada trade war continued to escalate recently as both sides threw another log onto the fire. First, Canada responded to Section 338 tariffs with counter-tariffs of its own on a host of American products.  

Beginning on September 8, Canada added an additional surtax of 15%, 25%, or 50% on products that were targeted by U.S. tariffs including dairy, alcohol, and vehicles.  

In response to Canada’s actions, President Trump published a flurry of proclamations that evening announcing further changes to the Section 338 actions. First, he made a handful of modifications to the scope of the existing tariffs, removing items like rock salt and cement while adding additional dairy and other products to the list. Those changes become effective at 12:01 a.m. Eastern Time on September 15, 2026. Then, in an escalation of those actions, he announced import exclusions on a host of vehicle, dairy, and alcohol imports from Canada beginning at 12:01 a.m. Eastern Time on September 29, 2026. 

As has been the case throughout this battle, there is still plenty of time for negotiations to come to some sort of resolution before these actions go into effect. The import bans, specifically, would mark an unprecedented escalation between the two countries. But given what we’ve seen throughout the year, we can’t rule them out entirely. 

This remains a tenuous situation as neither side seems ready to back down. But with consumers and businesses caught in the crosshairs, the next few weeks will be crucial. 

Scarbrough will continue monitoring the negotiations and provide updates as they become available. If you require assistance or need further information on the latest tariffs, please contact us for guidance.