United States to Impose 50% Tariffs on Selected Canadian Goods on August 19, 2026
HRAI and its members continue to follow trade developments between Canada and the United States closely. HRAI supports a return to stable, rules-based and largely tariff-free trade within the North American market.
Earlier this month, members were alerted to changes to Canada’s steel and aluminum tariffs on U.S. imports — changes that exempted U.S.-manufactured natural gas furnaces from Canadian tariffs and could improve affordability for heating products in Canada. More information is available in HRAI’s previous article.
On July 20, 2026, U.S. President Donald Trump signed three proclamations imposing additional 50% tariffs on selected products of Canada under section 338 of the U.S. Tariff Act of 1930. The Administration stated that the measures are intended to offset what it characterizes as Canada’s “discrimination against or unequal imposition on the commerce of the United States.”
The tariffs will apply to listed goods on or after 12:01 a.m. Eastern Time on August 19, 2026. They will apply even if the goods qualify as exempt under the United States-Mexico-Canada Agreement (USMCA). Goods subject to duties under section 232 of the U.S. Trade Expansion Act are excluded from these additional tariffs. The motor-vehicle-related proclamation provides the applicable legal details.
Members exporting goods to the United States should identify any Canadian-origin shipments classified under the listed U.S. Harmonized Tariff Schedule (HTSUS) provisions, determine whether an exclusion applies, and review the timing of entries scheduled for August 19, 2026, or later.
Two classifications that may cover HVACR or water-heating products appear in Annex I to the motor-vehicle-related tariff action:
8418.50.00: Refrigerating or freezing display counters, cabinets, showcases and similar refrigerating or freezing furniture
8418.69.01: Refrigerating or freezing equipment, not elsewhere specified or included
Members should review the relevant proclamations and annexes against their own product classifications, country-of-origin determinations, and U.S. entry timing before drawing conclusions for individual shipments. Companies should consult their customs brokers or trade counsel before determining the treatment of individual shipments.
“Canada believes in the benefits of free and fair trade, as evidenced by our new government signing more than 20 new economic and security partnerships. This trade dispute has raised costs for families, particularly in the U.S. Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.”
For more information, please contact HRAI’s Regulatory Affairs Director, Perry Chao at pchao@hrai.ca.
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