Canada extends, reshapes U.S. tariff relief

Canada extends U.S. tariff remission to mid-2028

Canada is extending its tariff relief program for U.S. imports that face Canadian counter-tariffs, prolonging horizontal remission by one year to June 30, 2028. Effective November 9, 2026, the measures keep in place relief for qualifying U.S. goods even as retaliatory duties on a range of products remain in force. The program is intended to reduce the burden on Canadian firms importing tariffed goods while the broader trade dispute continues.

The remission framework allows importers to seek relief in defined circumstances, including where goods are in short supply in Canada or where companies face exceptional situations such as pre-existing contractual obligations. This approach is designed to support the competitiveness of Canadian businesses that are unable to shift away from U.S. sources of supply despite the counter-tariffs.

Scope of relief broadened beyond steel

The updated measures expand tariff relief beyond steel-related products to a wider set of non-steel goods. Horizontal relief now covers non-steel goods used in mining, quarrying and the extraction of oil and gas, as well as non-steel inputs used in manufacturing or processing and agricultural production. It also extends to goods used in the packaging of agricultural products as part of agricultural production and the packaging of food or beverages as part of manufacturing or processing.

In addition, goods used by public education entities are eligible for remission, including organizations mandated by Indigenous bodies. Certain public health, public safety and national security organizations are also covered, reflecting the priority placed on essential services and critical sectors. These changes widen the range of sectors that can obtain relief from the counter-tariffs while importing U.S. goods.

Targeted tightening for products with domestic supply

Alongside broader eligibility, Canada is narrowing relief where officials judge there is reliable domestic production. Horizontal remission will be removed for certain trailers effective December 1, 2026. From February 1, 2027, relief will also be withdrawn for certain aluminum wire and extrusions and for paperboard products that can be sourced in Canada.

Authorities indicate that providing lead time before these changes take effect is intended to allow importers to adjust supply chains or seek case-by-case remission. Ottawa has stated that it plans to exclude from the remissions program goods that can be reliably sourced domestically, aligning tariff policy more closely with the objective of encouraging the use of Canadian-made inputs.

Retaliatory tariffs and ongoing relief framework

Canada continues to maintain retaliatory tariffs on a broad range of U.S. imports following the imposition of U.S. duties on Canadian goods. As of September 8, 2026, additional counter-tariffs of 15 to 50 per cent apply to a range of U.S. imports, and existing horizontal and product-specific remission was carried over to these newer duties.

Since March 2025, when the United States began imposing tariffs on Canadian goods, Canada has responded with levies of its own while creating a remission mechanism to mitigate impacts on domestic firms. The current modifications continue this dual track, combining firm counter-tariffs with expanded and targeted relief so that essential or hard-to-source U.S. goods can still enter Canada on reduced or remitted terms.