Canada: Export Controls & Trade & Investment Sanctions

Canada and the United States have escalated their trade war with new retaliatory tariffs and import prohibitions taking effect in September 2026. What specific goods are now subject to these measures, and how do the complex layers of tariffs interact to impact cross-border commerce? This comprehensive analysis breaks down the latest developments in the deteriorating Canada-U.S. economic relationship.

Those involved in importing or exporting controlled nuclear information should review this article because the applicable Canadian regime is undergoing significant change, with important consequences for both licensing and day-to-day management of information.

La Cour supérieure de justice de l'Ontario a rendu une décision historique concernant le régime de sanctions canadien visant la Russie, établissant des précédents importants sur l'interprétation du test du "contrôle réputé". Cette affaire examine comment les entreprises canadiennes doivent évaluer leurs relations commerciales avec des entités potentiellement liées à des personnes ou organisations sanctionnées. Les implications de cet

Canada has announced C$27.6-billion in counter-tariffs on U.S. imports, effective September 8, 2026, targeting over 700 product classifications across steel, aluminum, dairy, electronics, and other sectors. The measures represent a dollar-for-dollar response to U.S. Section 338 tariffs, with rates ranging from 15% to 50% depending on the product category. The government has also introduced a C$7.5-billion support package for affected Canadian workers and businesses.

As Canada and the United States escalate their trade dispute with new retaliatory tariffs, businesses face mounting compliance challenges across multiple sectors. This analysis examines the comprehensive tariff landscape affecting bilateral trade, including Canada's September 8, 2026 surtaxes on U.S. imports and the corresponding American section 338 tariffs, detailing rates, exemptions, and the legal frameworks governing these measures.

This article is Part 3 of a four-part series on Canadian sanctions compliance. Part 1 — Overview covered the core legislative framework. Part 2 — Real Estate examined sanctions risk in real estate transactions. Part 3 focuses on the cross-border compliance conflict that arises when Canadian and U.S. Cuba sanctions obligations collide. Part 4 (July 21) will address Canada’s export control rules and recent amendments to the Export Control List.

President Trump has invoked a Depression-era trade statute to impose sweeping 50% tariffs on Canadian dairy, alcohol, and automobiles, directly challenging Canada's protectionist Supply Management system. The unprecedented use of Section 338 of the Tariff Act of 1930 signals an aggressive push for major concessions on agricultural trade barriers as CUSMA negotiations intensify.

On July 20, 2026, President Trump issued three tariff actions to impose 50% ad valorem tariffs on a wide range of imports from Canada to "hold Canada accountable for its retaliation and discrimination" in the motor vehicle, alcoholic beverage, and dairy sectors. These tariffs are currently set to take effect on August 19, 2026.

President Trump has invoked Section 338 of the Tariff Act of 1930 for the first time in history, imposing an additional 50% tariff on nearly US$20 billion worth of Canadian goods across automobiles, alcoholic beverages, and dairy sectors. These tariffs, effective August 19, 2026, apply regardless of USMCA compliance and stack on top of existing duties, fundamentally altering the Canada-U.S. trade landscape. Canadian businesses must urgently assess their exposure as these unprecedented measures arrive amid s