Canada Hits Back Against U.S. Tariffs
Canada has announced “dollar-for-dollar” tariffs as high as 50% on a range of US goods from steel to tuna and apparel. The list of products is designed to match Canadian goods targeted by the US and will come into effect September 8th.
Canada Announces New Counter-Tariffs on U.S. Goods
The Government of Canada has announced a new round of counter-tariffs in response to recent U.S. Section 338 tariff measures on Canadian exports.
Effective September 8, 2026, Canada will impose additional tariffs of 15%, 25%, and 50% on selected U.S.-origin goods representing approximately $27.6 billion in imports. Affected product categories include steel, dairy products, appliances, agricultural equipment, pulp and paper products, electronics, and other commodities.
The tariffs will apply only to goods that qualify as U.S.-origin under Canada-United States-Mexico Agreement (CUSMA) marking rules. Goods that are already in transit to Canada before September 8, 2026, will not be subject to the new tariffs.
Companies importing affected U.S. products could be eligible for support through programs administered by the Canadian Department of Finance, including the Regional Tariff Response Initiative, the Canada Strong Diversification Fund, or several other relief and remission measures. Source
Canada, U.S. officials work to finalize trade deal after new tariffs paused
Canadian and U.S. officials are working on finalizing a deal that would avert new U.S. tariffs on nearly $30 billion in Canadian goods that were due to take effect on 19th August. Prime Minister Mark Carney and his negotiators discussed the prospective deal with his cabinet and the premiers. Canada has been in pursuit of a deal that would have the US drop or reduce tariffs on its steel, aluminium, automobiles and lumber. Under a deal that could be completed soon, US tariffs on Canadian steel and aluminum would reportedly be cut to 25% from 50%. The US may also lower its headline tariff rate on Canadian-made vehicles from 25% to 15%, according to reports from US and Canadian media. Following Carney's meeting, Nova Scotia Premier Tim Houston said the prime minister asked provinces to return US alcohol to Canadian markets. Most Canadian provinces banned US alcohol sales last year in retaliation to Trump's tariffs.
Costa Rica updated the import taxes
Costa Rica customs authority has updated the tariff rates including the IFAM, Consumption Tax, and SPT tax rates for various products classified under the tariff chapters 27 and 87.
European Union: Classification of certain goods
The Tares customs tariff updated to 1 August 2026:
3917 33 00 - An article to be used in connection with infusion systems consisting of:
- three interconnected transparent plastic tubes, each approximately 5 cm long and approximately 1,5 mm in outer diameter,
- a Y-connector,
- a simple Luer Lock connector with a rotating nut and a protective cap,
- two Luer Lock connectors with an integrated non-return valve, and
- two slide clamps.
7318 15 42 - Galvanised threaded rods of steel other than stainless steel, with a metric thread along their entire length, without a head or recess, with a tensile strength of less than 800 MPa, in different lengths (between 1 000 and 3 000 mm) and diameters (between 4 and 36 mm).
Japan customs tariff update
On 08th August, Japan customs authority has updated the tariff. Update includes the changes to HS codes, product descriptions, customs duty rates, Units of Measurement (UOM), Value-Added Tax (VAT), and preferential duty rates for various products. Source
Panama customs tariff update
Panama Customs has updated imported tax such as; selc, and itbm tax rates for certain products classified under the tariff chapter 10.
Switzerland tariff updates
The Tares customs tariff will be updated on September 1, 2026. Source
European Union: Changes in the customs classification of goods: Valid CN code for threaded steel bars
The European Commission has adopted Implementing Regulation (EU) 2026/1874 of 23 July 2026 concerning the classification of certain goods according to the Combined Nomenclature (CN). The new legislation specifies that galvanised threaded rods of steel other than stainless steel, with certain strength and dimensional parameters, are to be classified under subheading 7318 15 42 of the CN as other screws and screws without heads. The regulation ensures the uniform application of tariff rules in all EU Member States. From the perspective of the international trade sector and compliance professionals, correct customs classification is crucial to determine the right tariff rates and avoid the risk of disputes with the tax administration. Binding Tariff Information (BTI) issued so far, which is not in accordance with this Regulation, remains valid for a period of three months from the date of its entry into force. The regulation enters into force on 18 August 2026, is binding in its entirety and directly applicable in all Member States.
United States: CBP Issues Guidance for Section 338 Tariffs on Canada
On August 21, 2026, U.S. Customs and Border Protection (CBP) issued a bulletin via its Cargo Systems Messaging Service (CSMS) providing guidance on the implementation of Section 338 tariffs on certain products of Canada. The CSMS bulletin provides guidance on the applicable Harmonized Tariff Schedule (HTS) codes used to report the additional tariffs, as well as the applicability of the tariffs to goods admitted into a Foreign Trade Zone (FTZ). The CSMS bulletin also indicates that drawback is eligible for goods subject to the additional tariffs. The tariffs became effective on August 22, 2026 at 12:01 am Eastern Time, and are applicable to imports from Canada of subject commodities entered for consumption, or withdrawn from warehouse for consumption, on or after that date and time. Source
United States: New Tariffs and Minimum Import Prices on Polysilicon, Derivatives and Solar Products
The U.S. will impose new Section 232 trade measures on imported polysilicon, polysilicon derivatives, and solar products effective December 4, 2026, including minimum import prices and a separate 15% ad valorem tariff for specified downstream products. The minimum import price program applies to raw polysilicon, polysilicon ingots and wafers, solar cells, and solar modules, with CBP requiring importers to certify compliant U.S. sale prices or qualifying fixed-term contracts entered into before August 6, 2026. Importers of covered polysilicon and solar supply chain products should assess product scope, tariff exposure, supply and customer contracts, sourcing strategies, entry documentation, and compliance controls ahead of the December 4, 2026 effective date.
United States: BIS Requests Public Comment on Additional Section 232 Duties
In a Federal Register Notice (FRN) published on August 6, 2026, the Bureau of Industry and Security (BIS) requested public comments on a proposed addition of 14 steel, aluminum, and copper derivative articles to the list of products subject to Section 232 duties. BIS proposes to include the following products in the scope of Section 232:
- Aluminum powder
- Brass-wind musical instruments, and their parts and accessories
- Parts of welding machines and apparatus
- Floor safes
- Certain electric conductor cables
- Fire extinguishers
- Parts of heat exchange units
- Parts of certain hydraulic engines and motors
- Certain self-propelled cranes, mobile lifting frames, and straddle carriers
- Tanker trailers and semi-trailers
- Self-loading or self-unloading trailers and semi-trailers for agricultural purposes
- Certain other trailers and semi-trailers
- Certain filled steel containers
Comments must be submitted through the Federal Rulemaking Portal (www.regulations.gov) no later than August 27, 2026.
United States: Temporary Suspension of Additional Duties on Canadian Goods
The U.S. President issued a proclamation on August 18, 2026, temporarily delaying the implementation of additional Section 338 duties on certain Canadian imports relating to Canadian treatment of U.S. alcoholic beverages, dairy products, and motor vehicles.
- The U.S. had previously imposed additional 50% ad valorem duties on certain Canadian products under Section 338 of the Tariff Act of 1930.
- These duties were originally scheduled to become effective August 19, 2026.
- The new proclamation suspends the duties for three days, moving the effective date to 12:01 a.m. ET on August 22, 2026.
The suspension covers the additional duties established by three July 20 proclamations concerning:
- Alcoholic beverages
- Dairy products
- Motor vehicles
The administration stated that Canada has expressed a commitment to remove the discriminatory measures that triggered the U.S. tariffs. The three-day delay is intended to provide additional time for U.S.–Canada negotiations. CBP is directed to suspend collection of the additional duties during the suspension period and determine whether further HTSUS modifications are required. If duties have already been collected and a refund is required, the proclamation provides that refunds will follow applicable law and CBP's standard refund procedures. Source: The WhiteHouse
United States: Imposing Tariffs on Drones and Their Parts and Components
President Donald Trump signed a Section 232 proclamation imposing new tariffs on imported unmanned aircraft systems (UAS/drones) and certain drone parts and components. The stated objective is to address national-security risks, reduce U.S. dependence on foreign supply chains, particularly China, and encourage domestic drone manufacturing.
- 100% additional tariff applies to certain sensitive drones, including drones weighing more than 25 kg and those equipped with thermal-imaging capabilities.
- 25% additional tariff applies to other covered drones that do not fall within the sensitive-drone category.
- 25% additional tariff applies to specified drone parts and components.
- A 15% tariff rate may apply to eligible products originating in the European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan, subject to the applicable conditions.
- A 10% tariff rate may apply to eligible drones originating in the United Kingdom, subject to the relevant requirements.
Certain less-sensitive drone components have a longer implementation period of 180 days. The main tariff provisions are scheduled to become effective September 3, 2026.
The reduced rates for certain trading partners are subject to conditions, including requirements concerning the origin of substantially all hardware, software and technology.
Source: Whitehouse
United States: Imposing tariffs on polysilicon and its derivatives
On August 6, 2026, President Trump issued a Presidential Proclamation under Section 232 of the Trade Expansion Act of 1962, determining that imports of polysilicon and its derivatives threaten U.S. national security. The objective is to rebuild domestic polysilicon and downstream semiconductor/solar manufacturing capacity.
President Donald J. Trump signed a Proclamation to protect America’s polysilicon industry and supply chain from imports that threaten national security.
- The Proclamation imposes a minimum import price program on imports of polysilicon and polysilicon derivatives to create a level playing field for American producers of these strategic goods.
- The Proclamation imposes a 15% ad valorem tariff on derivative products that are downstream of polysilicon to encourage onshoring of these industries.
- The Proclamation authorizes the Secretary of Commerce to establish an incentive program for companies that will invest in building, expanding, or refurbishing facilities that produce polysilicon and polysilicon derivatives. This program will ensure commercial viability of U.S. production of polysilicon and its derivatives and enhance employment opportunities for Americans.
The applicable minimum import prices for imported polysilicon and polysilicon derivatives shall be:
(i) $21 per kilogram for polysilicon;
(ii) $100 per kilogram for polysilicon ingots and wafers;
(iii) $0.22 per watt for solar cells; and
(iv) $0.38 per watt for solar modules.
The remedies will take effect 120 days after signing. Source: The Whitehouse
United States: CBP Provides Guidance on Brazil Section 301 Duties
In a Cargo Systems Messaging Service (CSMS) bulletin published on July 21, 2026, U.S. Customs and Border Protection (CBP) provided implementation guidance for the 25% Section 301 tariff applicable to products from Brazil.
CBP’s guidance outlines the applicable Harmonized Tariff Schedule (HTS) codes for the Section 301 duties, HTS sequences, its applicable exemptions, and a list of classifications that can be used to claim those exemptions. Imported Brazilian goods that have been properly claimed under an eligible Chapter 98 HTS code will not be subject to the Section 301 duties. Products of Brazil that are subject to the Section 301 duties and entered into a Foreign Trade Zone (FTZ) may only be admitted in “privileged foreign status” unless eligible for admission under “domestic status.” The Section 301 duties apply to Brazilian origin goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time (EDT) on July 22, 2026. A transit exemption is available for products of Brazil that were loaded onto a vessel and in transit on the final mode of transportation prior to July 22, 2026, provided they are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. EDT on July 29, 2026.
USTR Announces Forced Labor Enforcement Section 301 Tariffs
In a press release on July 23, 2026, the Office of the United States Trade Representative (USTR) announced the imposition of tariffs on 60 economies “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
The following Section 301 duty rates will apply:
- A 10% Section 301 duty will be applied to goods from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
- A 10% or 12.5% duty, net of the Most-Favored-Nation (MFN) rate, will be applied to goods from the European Union, Taiwan, Japan, Korea, and Switzerland that are not otherwise exempt.
- A 12.5% Section 301 duty rate will be applied to goods from all other investigated economies.
These duties will apply to covered goods that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on July 24, 2026. Goods that were loaded onto a vessel at the port of loading and were in transit on their final mode of transportation before the effective date will be exempt from these duties, provided they are entered for consumption or withdrawn from a warehouse for consumption, before 12:01 a.m. Eastern Time on July 28, 2026.