Where do Canada-U.S. trade measures stand? Duties, bans, counter-tariffs and CUSMA

Since Aug. 22, the U.S. has charged 50% duties on about $27.6 billion of Canadian goods under Section 338 of its Tariff Act of 1930, and since Sept. 29 it has banned some Canadian alcohol, dairy, molasses and motorcycles. Canada's matching counter-tariffs on $27.6 billion of U.S. goods took effect Sept. 8. Canada suspended negotiations Aug. 21. CUSMA was not renewed on July 1 but remains in force. What set off this piece: a White House trade counselor's Sept. 29 remark telling Canadians "on K Street" to "get the hell out of our country."

Verdict: The binding measures are those duties, bans and counter-tariffs, made by proclamation or cabinet order. The remark, as reported, is not a rule; no U.S. measure bars Canadian lobbying.

The six questions

Who decides?

The U.S. President, by proclamation; in Canada, the federal cabinet (Governor in Council), by order under the Customs Tariff.

What?

U.S. duties and import bans; Canadian surtaxes.

When?

Aug. 22 to Sept. 29, 2026.

Where?

The Federal Register; the Canada Gazette.

Why?

The U.S. proclamations say Canada discriminates against U.S. alcohol (provincial store bans), dairy (quota allocation) and vehicles (counter-tariffs). Canada says it is matching the duties "dollar for dollar."

How?

Section 338 lets the President add duties of up to 50% on a country he finds discriminates against U.S. commerce, then ban its goods if that continues.

What applies now

• U.S. Section 338 duties: 50% on listed goods, regardless of CUSMA status (Proclamations 11046 to 11048, July 20). Sept. 8 proclamations revised the list and banned some goods: about US$967 million of 2025 imports, per the Congressional Research Service (CRS). It is the first use of Section 338 for tariffs.
• Other U.S. tariffs: Section 232 national-security tariffs hit Canadian steel, aluminum, autos and lumber; Section 338 can stack on top, to 100% on some items. Most goods meeting CUSMA rules enter duty-free (CRS).
• Canada's counter-tariffs: The United States Surtax Order (2026) puts 15%, 25% or 50% surtaxes on U.S. goods including steel, dairy and appliances. Earlier orders on U.S. steel, aluminum (mostly raised to 50%) and vehicles remain.
• Talks: The minister responsible for Canada-U.S. trade said Sept. 29 the sides are "not negotiating detailed text" but "remain in contact."
• CUSMA: At the July 1 joint review, the U.S. "did not agree to renew." The agreement now gets yearly reviews and ends in 2036 unless all three countries extend it (Article 34.7).

Positions

• U.S. Trade Representative (Sept. 8): Canada "walked away from a near-final trade deal" and chose "senseless retaliation."
• Government of Canada (Canada Gazette): "Canada's trade practices are not discriminatory against U.S. commerce."
• Prime Minister (Aug. 21): Late U.S. terms "were unfair, uneconomic, and called into question the reliability of any deal."

Source Check: the K Street remark

The Toronto Sun headline credits a "Donald Trump adviser": Peter Navarro, Assistant to the President and Senior Counselor for Trade and Manufacturing, at the American Growth Summit. Asked about Canada, he said, as reported: "if you're on K Street, get the hell out of our country." He added that "if you interfere in our elections in Maine or Michigan you will pay even more dearly," without saying what interference would mean (CBC). His own post that day, embedded by Global News: "Everyone lined up to negotiate. Canada? They showed up with lobbyists."

C-SPAN lists a video; 5W1H could not open it and found no transcript. U.S. law lets foreign governments lobby through agents registered under the Foreign Agents Registration Act; foreign nationals may not make contributions or expenditures in U.S. elections. The remark changed neither.

Established, claimed and unknown

• EstablishedThe Section 338 duties and bans, with dates and legal basis; Canada's Surtax Order; talks suspended Aug. 21; CUSMA not renewed but in force; the counselor's title.
• ClaimedThe U.S. says Canada discriminates against U.S. goods; Canada says it does not.
• Claimed (reports)The remark's wording (consistent across four outlets) and that it answered a host's question.
• UnknownWhether Section 338 tariffs survive in court; when talks resume; the full transcript; what "interfere" meant; whether any lobbyist was told to leave (none found).

History

March 2025: first U.S. tariffs under an emergency-powers law, and Canadian counter-tariffs. Feb. 20, 2026: the U.S. Supreme Court rules that law doesn't authorize tariffs. July 20: Section 338 proclamations, then the steps above.

What could change it

A deal; new or suspended proclamations; court rulings; Congress, where bills would curb Section 338 (CRS); a new Canadian order; or a CUSMA extension or withdrawal.

Sources