WHAT CHANGED IN TRADE POLICY
Short summaries of the actions that keep showing up in supplier increase letters. These are simplified. For classification level detail, work with your customs broker or counsel.
September 8, 2026 (upcoming): Canada's dollar-for-dollar counter-tariffs take effect
Canada will match the U.S. Section 338 and Section 232 tariffs rate for rate on about $27.6 billion of U.S. imports. Steel, aluminum, furniture, clothing, and apparel face a 50% counter-tariff (up from 25% for steel/aluminum). Appliances, dairy, fish, seafood, and certain steel/aluminum derivatives face 25%. Existing counter-tariffs on autos are unchanged.
August 25, 2026: Canada announces a retaliation plan
Canada's Department of Finance confirmed September 8 counter-tariffs, alongside a $7.5 billion support package for affected Canadian workers and businesses. Ottawa says it suspended trade talks rather than accept the terms on offer, and would return to the table if that changes.
August 22, 2026 (in effect): The 50% Canadian duty took effect
The three-day pause did not produce a finalized deal. Talks broke down the evening of August 21, and the 50% Section 338 duty took effect as scheduled at 12:01 a.m. ET on August 22. It stacks on top of duties already owed, and USMCA does not exempt covered goods. Energy, potash, critical minerals, and Section 232 goods (steel, aluminum, copper) are excluded. Duty is based on entry date into the U.S., not ship date from Canada, so goods already in transit were still caught. CBP guidance (CSMS #69606660) sets filing under HTS headings 9903.03.12 through 9903.03.16.
July 24, 2026 (in effect): New Section 301 duties on goods from 60 trading partners
Additional duties of 10% or 12.5% now apply to imports from 60 countries and economies, based on how each one handles prohibitions on goods made with forced labor. Countries with prohibitions in place fall at 10%, the rest at 12.5%.
Goods already covered by Section 232, including steel, aluminum, and automobiles, are exempt, as are a long list of raw materials, supply chain critical items, and certain food, fertilizer, and energy products. These duties took effect the same morning the temporary 10% global duty expired, so for many imports the immediate cost change is modest.
July 20, 2026: Three proclamations set the Canadian duty
The August 19 action was signed on this date and covers roughly $20 billion in annual imports from Canada. Reports since have indicated that U.S. and Canadian leadership agreed to accelerate talks in an effort to reach an agreement before the duty takes effect.
February 2026 (background): Why the legal authorities keep changing
The Supreme Court found that the emergency powers statute used for the earlier round of tariffs did not authorize them. A temporary global duty filled the gap until it expired in late July. The result is a policy that keeps moving between legal authorities, which is why suppliers are writing increases that stay open to further adjustment.
WHAT IT MEANS FOR ELECTRICAL
The full picture across our markets and vendor community is still forming. These are the effects worth planning around.
Higher landed cost. Components and finished goods coming from covered countries carry more duty, and that cost works its way into list prices and multipliers over the following quarters.
Less predictable supply. As manufacturers qualify alternate sources and shift production to countries outside the scope, lead times and availability get harder to forecast.
Broader price pressure. Retaliatory measures and general cost inflation add pressure beyond the directly tariffed items, including on domestically produced goods.
