Tariff Update: Latest Changes to US, Canada and Mexico Import Duties
October 15, 2026 | ATN Trade & Finance
The North American tariff landscape has shifted significantly since summer, with a major new US tariff on Canadian goods, a Canadian counter-strike, and a quieter but still elevated regime for Mexico. Here is the current state of play.
US–Canada: The 50% Section 338 Tariff
The most consequential recent change is the 50% Section 338 tariff on a broad range of Canadian goods, which took effect August 22, 2026 (delayed three days from August 19). The tariff covers cement, furniture, paper, textiles, cosmetics, plastics, and sporting goods. Critically, it applies based on country of origin — meaning it hits even USMCA-qualified goods, bypassing the preferential treatment the agreement normally provides. Energy and potash are excluded, as are goods already subject to Section 232. On top of this, a 10% Section 301 forced-labor tariff on Canadian goods took effect July 24 when the earlier 10% Section 122 surcharge expired. The US also imposed an import ban on approximately $1 billion of select Canadian products on September 29 — covering alcoholic beverages, motorcycles, molasses, whey, and dairy.
Canada's Retaliation: C$27.6 Billion
Canada responded on September 8 with counter-tariffs of 15%, 25%, or 50% on 629 HS codes of US goods, covering approximately C$27.6 billion in American exports. Canada's existing counter-tariff on US steel and aluminum rose from 25% to 50%, matching the US rate.
US–Mexico: More Stable, Still Elevated
The Mexico picture is less volatile. The IEEPA 25% tariff on Mexican goods ended February 24, 2026, and the Section 122 surcharge expired July 24, replaced by the same 10% Section 301 forced-labor tariff applied to Canada. USMCA-compliant goods remain duty-free on most product lines — the main exception being Section 232 steel and aluminum (50%), which USMCA does not exempt. Mexico has not retaliated and has kept counter-tariff measures in reserve while bilateral talks continue. US and Mexican trade officials have held at least three rounds of negotiations, with Mexico's Commerce Minister Marcelo Ebrard describing progress as "getting close."
Steel and Aluminum: Broad 50% Rate
Both countries face the 50% Section 232 on steel, aluminum, copper, and derivatives. As of April 6, 2026, these tariffs now apply to the full value of affected goods rather than only the metal content, meaningfully increasing the effective cost for downstream manufacturers.
What this means for importers: The US–Canada relationship is now in active escalation: a 50% tariff on one side, a C$27.6 billion retaliation on the other, and an import ban layered on top. The Mexico corridor remains open under USMCA rules of origin, though the Section 232 carve-out and the Section 301 forced-labor tariff add cost for non-compliant or steel-intensive supply chains. Businesses with Canada-origin inputs should audit their HS codes immediately — the Section 338 scope is wide and USMCA qualification does not help.
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