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.
Timeline Summary:
- October 30 — Canadian product scope changes
- September 29 — Canadian import bans
- September 15 — Canadian tariff scope revision
- September 8 — Canadian counter-tariffs
- August 22 — 50% Canadian duty
- July 24 — Section 301 duties
October 30, 2026 (upcoming): U.S. revises 50% tariff on select Canadian goods
The U.S. has revised the products covered by its 50% Section 338 tariff on Canadian imports. Some products, including certain machinery and refrigeration equipment, are being removed, while others, including certain valves, are being added. The changes take effect October 30 and apply regardless of USMCA status.
September 29, 2026 (in effect): U.S. import ban on select Canadian goods
The U.S. has banned imports of certain Canadian alcoholic beverages, dairy-related products, and motorcycles over 800cc. These products were previously subject to a 50% Section 338 tariff. Other Canadian products covered by the Section 338 actions generally remain subject to the 50% duty. USMCA qualification does not exempt products covered by these measures.
September 15, 2026 (in effect): Section 338 duty scope revised
The list of Canadian products subject to the 50% duty changed. About 122 classifications were added, including all-terrain vehicles and additional dairy products. Several were removed, including rock salt, cement, and fishing rods. The 0% carve-out also narrowed, now applying to only one of the three Chapter 99 headings rather than two.
September 8, 2026 (in effect): Canada's dollar-for-dollar counter-tariffs took effect
Canada matched the U.S. Section 338 tariffs with 15%, 25%, and 50% counter-tariffs on about $27.6 billion of U.S. imports. Steel, aluminum, furniture, clothing, and apparel face 50%. Appliances, dairy, fish, seafood, and certain steel and aluminum derivatives face 25%. Existing counter-tariffs on autos are unchanged.
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.
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.