[Canada] Canada Strikes Back: Retaliatory Tariffs, Section 338 & What Importers Need to Know

Host: Lalo Solorzano Guest(s): Kim Campbell, Mollie Sitkowski Published: August 26, 2026 Length: 26 minutes Presented by: Global Training Center Summary Canada-U.S. trade tensions are escalating again—and trade professionals on both sides of the border need to move quickly. In this special episode of Simply Trade, host Lalo Solorzano is joined by Canadian trade expert Kim Campbell and Section 338 expert Mollie Sitkowski to break down Canada's newly announced retaliatory tariffs and what businesses should be doing before they take effect. Kim explains Canada's dollar-for-dollar retaliation strategy, including tariff increases affecting more than a thousand tariff lines and some products potentially facing significant additional costs. She also highlights an important distinction for traders: while CUSMA/USMCA qualification may reduce the underlying duty rate, it does not exempt goods from these retaliatory tariffs. Mollie provides the U.S. perspective, including what businesses should understand about Section 338, origin determinations, classification reviews, and the risks of changing tariff classifications simply to escape today's tariff exposure. Beyond customs compliance, the conversation examines the growing economic consequences of the dispute—from Canadian buying behavior and tourism to cross-border businesses and supply chains. The message for trade professionals is clear: verify your data, understand your exposure, communicate with your customs partners, and watch official government guidance closely. Main Topic / Discussion Canada has announced retaliatory tariffs following the implementation of U.S. Section 338 measures. Kim Campbell and Mollie Sitkowski explain how the Canadian and U.S. measures interact, where CUSMA/USMCA does—and does not—provide relief, and what importers should review immediately. Canada's Retaliatory Tariffs Canada's response is designed around dollar-for-dollar retaliation. According to Kim, the new measures cover more than a thousand tariff lines and build upon earlier surtax measures, with some existing rates increasing substantially. One particularly important point: CUSMA qualification does not eliminate Canada's retaliatory tariff. A qualifying product may receive a zero base duty rate while still being subject to the applicable retaliation rate. Classification and Origin Matter Both Kim and Mollie stress the importance of reviewing tariff classifications rather than assuming historical classifications are correct. Mollie also cautions businesses against changing classifications simply because another tariff provision currently appears more favorable. Tariff measures can change quickly, and repeated classification changes without a defensible technical basis can create additional customs risk. For U.S. Section 338 purposes, importers should also carefully review the applicable origin rules, including USMCA marking rules for Canadian goods. Remission Opportunities in Canada Canadian importers should determine whether an existing remission order applies to their goods. Businesses experiencing hardship or situations where goods cannot reasonably be sourced in Canada may also be able to apply for remission. Importers should communicate proactively with their customs brokers. A broker cannot necessarily know that an importer qualifies for a remission unless the importer provides the necessary information and instructions. The Bigger Cross-Border Impact The consequences extend beyond duty bills. Kim describes a strong Buy Canadian movement, reduced Canadian travel to the United States, changes in consumer purchasing, and provincial restrictions affecting U.S. alcohol sales. The longer these disruptions continue, the greater the possibility that businesses and consumers develop new purchasing habits and supplier relationships that may not immediately reverse when tariffs disappear. Key Takeaways • Canada's retaliatory tariffs are designed as a dollar-for-dollar response to U.S. trade measures, with implementation scheduled for September 8 as discussed in the episode. • CUSMA/USMCA qualification may eliminate the normal duty rate, but it does not exempt qualifying goods from Canada's retaliatory tariff. • Importers should verify tariff classifications, product descriptions, origin determinations, and eligibility for available Canadian remission orders. • Do not reclassify merchandise simply to escape today's tariff list. Classification must remain technically supportable, and future tariff actions could change the economics again. • Canadian importers that qualify for remission need to communicate that information to their customs brokers so the appropriate treatment can be applied. • Businesses should monitor official government and customs guidance closely because implementation details and tariff measures can change quickly. • The effects of the dispute extend beyond customs duties into tourism, consumer purchasing, cross-border communities, sourcing decisions, and long-term commercial relationships. Resources & Mentions • Global Training Center • Finance Canada tariff and remission guidance — listeners should consult the current official Government of Canada guidance for the latest tariff lists, remission orders, and implementation details discussed in this episode. • U.S. Customs and Border Protection guidance — monitor current official notices and implementation instructions relating to Section 338 and other applicable trade measures. • Kim Campbell - LinkedIn • Mollie Sitkowski - LinkedIn Credits Host: Lalo Solorzano Guest(s): Kim Campbell - LinkedIn Mollie Sitkowski - LinkedIn Producer: Lalo Solorzano 📢 Subscribe & Follow Stay connected with the Simply Trade community and never miss an episode that helps you trade smarter. 🎧 Listen on: • Apple Podcasts • Spotify • YouTube 💬 Connect with us: • Simply Trade • Global Training Center • Trade Geeks Community Don't forget to rate, review, and share with your fellow trade geeks! Want to be on the show or have topic suggestions? 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