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New Canada-U.S. Tariffs Could Raise Costs for Canadian Shoppers

New Canada-U.S. Tariffs Could Raise Costs for Canadian Shoppers

By Akshay SatijaEditor in ChiefAugust 27, 2026Updated August 27, 20266 min readToday#Canada Tariffs#US Tariffs#Canada US Trade#Canadian Shoppers#Consumer Prices

TwikUp Brief

Three things to know

  1. 01

    Canada will impose new 15%, 25% and 50% counter-tariffs on selected U.S. products starting September 8.

  2. 02

    Affected products include appliances, dairy products, steel and aluminum products, furniture, clothing and apparel, among others.

  3. 03

    The federal government is also introducing a $7.5 billion support package for Canadian workers and businesses affected by the tariff dispute.

In this article · 14 sections

When Will Canada's New Tariffs Start?

The new Canadian counter-tariffs will take effect on September 8, 2026.

The federal government says each Canadian tariff rate will match the corresponding U.S. tariff rate for the affected product.

The new rates will be 15%, 25% or 50%, depending on the product.

This means businesses importing certain U.S. goods into Canada will face additional costs when the new measures take effect.

Which Products Are Affected?

The new counter-tariffs cover a wide range of products.

The federal government says goods facing 50% counter-tariffs include:

  • Certain steel products
  • Certain aluminum products
  • Furniture
  • Clothing and apparel

Products subject to 25% tariffs include:

  • Appliances
  • Dairy products such as cheese
  • Certain steel and aluminum derivative products

The broader list also covers products in areas such as agricultural equipment, pulp and paper, and electronics.

The exact tariff rate depends on the individual product.

Could Canadian Shoppers Pay More?

Potentially, but higher retail prices are not guaranteed.

When an imported product becomes more expensive because of a tariff, the additional cost can be absorbed partly by an importer, manufacturer, retailer or consumer.

Businesses can also respond by changing suppliers, adjusting margins or passing some of the additional cost to customers.

As a result, the effect on shoppers will vary from product to product.

For Canadians, the biggest areas to watch are imported appliances, dairy products, furniture, clothing and other consumer goods affected by the new tariffs.

Why Is Canada Imposing These Tariffs?

The new measures follow the United States' decision to impose a 50% tariff on $27.6 billion worth of Canadian goods effective August 22.

Canada says it will match the new U.S. tariffs dollar for dollar and rate for rate.

The federal government says the purpose of the countermeasures is to protect Canadian workers, producers and manufacturers affected by U.S. tariffs and help Canadian companies compete with U.S. products in the domestic market.

What Does This Mean for Canadian Businesses?

Canadian companies that rely on U.S. imports could face higher input costs once the new tariffs begin.

For example, a Canadian business importing an affected appliance, piece of equipment, or component from the United States could have to pay an additional tariff when the product enters Canada.

Businesses may then have to decide whether to absorb the additional cost, find another supplier or pass some of the cost along to customers.

The impact will differ depending on the company's supply chain and the specific product involved.

Canada Announces $7.5 Billion Support Package

Alongside the counter-tariffs, the federal government announced a new $7.5 billion package of measures for workers and businesses affected by the tariff dispute.

The package includes:

  • $1.5 billion through the Regional Tariff Response Initiative
  • $500 million in additional liquidity support through the Business Development Bank of Canada's Pivot to Grow program
  • $2 billion for the new Canada Strong Diversification Fund
  • $3.5 billion in Rapid Response Supports for Workers and Employers
  • New flexibilities for the Large Enterprise Tariff Loan facility

The government says the measures are intended to help companies manage cash-flow pressures, support investment and help workers affected by tariffs.

What Could Workers Get From the New Support?

The $3.5 billion Rapid Response Supports package includes extended and additional Employment Insurance temporary flexibilities.

The government also plans new workplace training investments and improvements to Job Bank.

A new Worker Retention and Retraining Program will also help employers retain workers during the period of tariff-related uncertainty.

The goal is to help workers stay employed where possible while providing additional support to people who need to transition to new opportunities.

What About Existing Auto Tariffs?

Canada's existing counter-tariffs on U.S. products, including automobiles, remain in place.

The federal government also says its tariff remission framework remains available to consider requests for exceptional relief.

That means the new measures do not replace every existing Canadian tariff response to U.S. trade actions.

What Should Canadian Shoppers Watch?

The biggest thing for consumers to watch is whether retailers and manufacturers pass additional import costs through to customers.

Products with significant U.S. supply-chain exposure could potentially see price pressure.

However, consumers should not assume that every affected product will immediately become more expensive on September 8.

Retail pricing can depend on existing inventory, supplier contracts, exchange rates, margins, and whether businesses can source products from other countries.

Could This Affect Grocery Bills?

Dairy products such as cheese are among the products listed for a 25% counter-tariff.

That means businesses importing affected U.S. dairy products could face additional costs after September 8.

However, the actual effect on grocery-store prices will depend on how importers, distributors and retailers respond.

Canadian shoppers should therefore watch for changes rather than assume a fixed percentage increase in supermarket prices.

What About Appliances and Furniture?

Appliances are included among products subject to 25% counter-tariffs, while furniture is among the goods listed for a 50% counter-tariff.

These categories could therefore be particularly relevant to consumers planning major purchases.

Anyone considering buying an appliance or furniture item should check whether the specific product is covered by the new tariff list rather than assuming all products in a category are affected.

Why the September 8 Date Matters

September 8 is the key date for Canadian shoppers and businesses because that is when the new counter-tariffs are scheduled to begin.

Until then, businesses have time to review their supply chains, inventory, and pricing strategies.

For consumers, the period before September 8 may also become important as retailers adjust their purchasing and pricing plans.

What Happens Next?

The federal government says it will continue monitoring the effects of the tariff dispute on Canadian businesses and workers.

It also says it may expand existing support measures to newly affected sectors if required.

For consumers, the most important development will be whether businesses pass additional import costs through to retail prices.

TwikUp Insight

The biggest takeaway for Canadian shoppers is that the new tariffs do not automatically mean every affected product will become more expensive.

What is certain is that new costs will apply to selected U.S. imports beginning September 8.

The affected categories include several products that Canadians buy regularly, including appliances, dairy, furniture and clothing.

Whether those costs ultimately reach consumers will depend on how importers, manufacturers and retailers respond.

The new $7.5 billion government support package also means the policy is about more than tariffs. Ottawa is trying to cushion the effect on businesses and workers while encouraging Canadian companies to adjust to the changing trade environment.

For consumers, September 8 is the date to watch.

Which Everyday Products Could Be Affected?

Canada's new counter-tariffs cover several products Canadians may buy regularly, including appliances, dairy products, furniture, and clothing. The exact rate depends on the individual product, with some goods facing 25% tariffs and others 50%.

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Frequently Asked Questions

FAQ

When will Canada's new counter-tariffs begin?

The new Canadian counter-tariffs are scheduled to take effect on September 8, 2026. The rates will be 15%, 25%, or 50%, depending on the affected product.

Which products will face Canada's new tariffs?

The affected categories include steel and aluminum products, furniture, clothing and apparel, appliances, dairy products such as cheese, agricultural equipment, pulp and paper, and electronics. The exact tariff rate varies by product.

Will Canadian shoppers definitely pay more?

Not necessarily. Tariffs increase the cost of importing affected products, but businesses can decide whether to absorb the cost, change suppliers, or pass some or all of it to customers. The final effect on retail prices will therefore vary by product and business.

How much is Canada spending to support workers and businesses?

The federal government announced a $7.5 billion package of new and enhanced measures, including support for small and medium-sized businesses, affected workers, training, and business investment.

Why is Canada imposing these tariffs?

Canada says it is matching the new U.S. tariffs dollar for dollar and rate for rate to protect Canadian workers, producers, and manufacturers affected by U.S. tariffs and help Canadian businesses compete with U.S. products in Canada.