OTTAWA, ON – August 25, 2026 – The Government of Canada announced on August 25th, 2026, the imposition of new counter-tariffs on certain goods originating from the United States, effective September 8, 2026. These duties, ranging from 15% to 50%, are a direct response to existing U.S. Section 338 and Section 232 tariffs.
A framework for requesting remission (relief) from these new tariffs has been established. However, the government emphasizes that remission is an exceptional measure and will only be granted under highly specific and compelling circumstances.
Key conditions for tariff remission:
The Department of Finance will primarily consider requests in two main situations:
- Sourcing difficulties: Where goods used as inputs cannot reasonably be sourced from Canadian suppliers (nationally or regionally) or from other non-U.S. international sources.
- Severe economic impact: In rare, case-by-case scenarios where other exceptional circumstances could lead to severe adverse impacts on the Canadian economy.
Rigorous assessment:
The government stresses that any remission granted must demonstrate “exceptional and compelling circumstances” that, from a public policy perspective, outweigh the primary rationale behind the application of these tariffs. Applications will undergo rigorous assessment by the Department of Finance, with potential consultations involving other federal departments and domestic producers. Final recommendations are made to the Minister of Finance, with ultimate approval from the Governor in Council.
What importers need to do:
To apply for remission, Canadian-registered companies must provide comprehensive documentation. This includes:
- Detailed company operations and specific goods descriptions (HS codes) on which remission is sought.
- Import volumes and values (if applicable).
- Crucially, robust evidence demonstrating the inability to source the product or substitutes from Canadian or non-U.S. suppliers. This includes records of sourcing attempts, reasons for failure, and any contractual obligations preventing alternative sourcing.
- Information on the economic effect of the tariffs and potential remission on your operations, including costs, pricing, employment, and investment.
- A clear justification outlining the exceptional circumstances that merit consideration.
Businesses anticipating an impact from these new tariffs should immediately assess their supply chains and review their sourcing capabilities. If you believe your situation aligns with the strict eligibility criteria, begin compiling the necessary detailed documentation.
For complete details and to access the full list of required information, please refer to the official guidance on the Department of Finance Canada website. Remission requests and inquiries should be sent via email to [email protected], with “U.S. Remission” in the subject line.
If you have any questions, please contact your Livingston account representative.
Learn more: Process for requesting remission of tariffs that apply on certain goods from the U.S.