The Huron Chamber of Commerce publishes this briefing to keep members informed of substantive developments in Canada’s trade dispute with the United States, including changes to tariffs, government programs, official announcements and economic data that may affect local businesses.
Canada-U.S. Trade War Briefing:
U.S. Revises Section 338 Tariffs as New Import Bans Approach
The Canada-U.S. trade dispute shifted again over the past week, with the United States revising the products covered by its 50 per cent Section 338 tariffs and announcing outright import prohibitions on selected Canadian goods beginning September 29.
The September 15 tariff revisions include two changes of particular importance to Huron County: salt and Portland cement are being removed from the Section 338 lists. At the same time, other Canadian products are being added, while selected alcohol, dairy and motor vehicle products will move from tariffs to import prohibitions later this month.
Canadian businesses also gained access this week to expanded federal tariff-response assistance through FedDev Ontario.
U.S. revises Section 338 tariffs and announces import prohibitions
Revised U.S. Section 338 product lists take effect at 12:01 a.m. Eastern time on September 15. Among the products being removed from the 50 per cent tariff are salt, including rock salt and pure sodium chloride, and Portland cement other than white cement. Both changes have particular local relevance given the importance of salt production in Goderich and the role of cement in construction, agriculture and building-material supply chains.
The U.S. is also removing several other products while adding new Canadian goods to the Section 338 lists. The changes do not amount to a broad rollback of the program. Businesses exporting to the United States should continue to confirm the specific HTS classification of their products rather than relying on broad product descriptions. The U.S. Trade Representative describes the September changes as a recalibration of the Section 338 measures, combining changes to the tariff lists with targeted import bans. https://hcoc.ca/news-14917
Beginning September 29, selected Canadian alcoholic beverages, dairy products and motor vehicle products that are currently subject to Section 338 tariffs will instead be prohibited from entering the United States. For affected exporters, this represents a substantially more restrictive measure than a tariff, since covered products will no longer be permitted to enter the U.S. market.
The September actions also reinforce the increasingly complicated nature of the tariff environment. Section 338 operates separately from U.S. Section 232 measures, and a Canadian product may be affected by more than one tariff program depending on its classification.
Chamber releases consolidated tariff guide
To make that increasingly complex landscape easier for businesses to navigate, the Huron Chamber has released a new 80-page Consolidated Canada-U.S. Trade War and Tariff Guide, replacing the two separate tariff guides previously maintained by the Chamber. https://hcoc.ca/us-trade-war-guide-pdf
The new guide brings the full bilateral tariff landscape into one resource, including U.S. Section 232 and Section 338 tariffs, Canada’s counter-tariffs, the September 15 changes to the U.S. Section 338 lists and the import prohibitions scheduled to begin September 29. It also includes detailed HTS and HS tariff tables, allowing businesses to check specific classifications rather than relying on broad summaries of affected sectors. The guide will continue to be updated as tariff rates, product lists and implementation dates change.
The Chamber’s U.S. Trade War page has also been updated to bring together the consolidated guide, relief programs, government guidance and continuing trade-war news: https://hcoc.ca/us-trade-war
Expanded FedDev tariff assistance now open
FedDev Ontario began accepting applications September 8 under the expanded Regional Tariff Response Initiative for businesses and organizations in southern Ontario.
Eligible businesses may access up to $3 million in combined non-repayable assistance, including up to $2 million for demonstrated liquidity needs and up to $1 million for an eligible business-pivot project. The expanded program is intended to address both immediate tariff-related financial pressures and longer-term investments in productivity, supply-chain resilience and market diversification. https://hcoc.ca/news-14928
Larger transformative projects may also qualify for repayable assistance. The federal government says the initiative is available across tariff-affected sectors and is aimed at businesses that were viable before the trade disruption and can demonstrate the effect tariffs are having on their operations. The liquidity component is an important expansion from the earlier version of the program, which was more heavily focused on investment and adaptation projects. Businesses experiencing tariff-related cash-flow pressure, or considering investments to reduce exposure to U.S. customers or suppliers, should review the updated eligibility requirements.
Canadian counter-tariffs remain in effect
Canada’s latest counter-tariffs have now been in effect since September 8. They apply rates of 15, 25 and 50 per cent to approximately $27.6 billion in selected U.S.-origin imports, with individual rates generally corresponding to the U.S. measures Canada is responding to. https://hcoc.ca/news-14939
The measures cover products across sectors including steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics.
The September 15 changes being made by the United States do not automatically change Canada’s counter-tariff list. Importers should therefore continue to consult the current Canadian tariff schedule when determining whether a U.S.-origin product is subject to a surtax. Canada’s tariff-remission process also remains available in exceptional circumstances, particularly where affected business inputs cannot reasonably be sourced in Canada or from non-U.S. suppliers. https://hcoc.ca/news-14946
What businesses should watch
The next two implementation dates are September 15 and September 29:
- On September 15, revised U.S. Section 338 product lists take effect. Exporters should check whether their products remain covered, have been removed or have been newly added.
- On September 29, selected Canadian alcohol, dairy and motor vehicle products will become subject to U.S. import prohibitions rather than tariffs.
For businesses facing tariff-related financial pressures in southern Ontario, the expanded FedDev Ontario program is now accepting applications.
The Huron Chamber will continue monitoring changes to U.S. and Canadian tariffs, import restrictions, relief programs and negotiations, and will update the Consolidated Canada-U.S. Trade War and Tariff Guide as measures change.
For the consolidated guide, continuing tariff information and business resources: https://hcoc.ca/us-trade-war
To receive Chamber news, business updates and advocacy information directly by email: https://hcoc.ca/newsletters
The Huron Chamber of Commerce is one of Canada’s fastest growing Chambers, connecting community leaders since 1990. Representing businesses across Huron County, the Chamber focuses on growing the local economy, supporting business success, and strengthening our towns and villages. As an independent, non-profit organization, the Chamber advocates for business and community interests, facilitates collaboration, and convenes stakeholders to develop and support a vibrant and thriving county.
