Canada and US Trade in 2026: Tariffs, Resources and What Changed

A dated timeline of 2026 U.S. and Canadian tariff actions on metals, energy and critical minerals, plus where the CUSMA review stands.

Key takeaways

Most US steel, aluminum and copper articles remained under 50% Section 232 tariffs after the framework was restructured on June 8, 2026.
The July 20, 2026 Section 338 proclamations imposed 50% on selected Canadian goods but exempted energy, potash and critical minerals.
Canadian counter-tariffs of 15%, 25% and 50% on C$27.6 billion of US goods took effect September 8, 2026.

Canada and U.S. trade in 2026 has run through a Supreme Court ruling, a replacement tariff, a failed renewal of CUSMA and a new 50% tariff under a law unused for decades. Metals remain under 50% Section 232 tariffs, while energy, potash and critical minerals were left out of the latest round. Here is the dated record and where it leaves the resource sector.

Timeline of tariff actions

Date	Action	Resource sector relevance
March 12, 2025	U.S. Section 232 tariffs of 25% on steel and aluminum apply to Canada	Direct hit on Canadian metal exports
June 4, 2025	Steel and aluminum tariffs raised to 50%	Doubles the rate
August 1, 2025	Copper tariff set at 50% under Section 232	Adds copper products
February 20, 2026	U.S. Supreme Court rules in Learning Resources v. Trump that IEEPA does not authorize tariffs	Ends the 35% tariff on non-CUSMA goods and the 10% tariff on non-CUSMA energy and potash
February 24, 2026	U.S. Section 122 surcharge of 10% on imports takes effect for up to 150 days	CUSMA-qualifying goods stay exempt; Section 232 goods excepted
June 8, 2026	Restructured Section 232 metals framework takes effect	Most steel, aluminum and copper articles stay at 50%; category-specific rates for others
July 1, 2026	CUSMA joint review: U.S. declines to extend	Triggers annual reviews; agreement runs to 2036 unless extended
July 20, 2026	U.S. signs three Section 338 proclamations imposing 50% on selected Canadian goods	Energy, potash and critical minerals exempted
July 24, 2026	Section 122 expires; Section 301 tariffs replace it, 10% for Canada	CUSMA-qualifying goods exempt
August 2026	Section 338 tariffs take effect (August 19 per U.S. law firm alerts; Canada’s Finance department cites August 22)	Canada suspends negotiations
September 8, 2026	Canadian counter-tariffs of 15%, 25% and 50% on C$27.6 billion of U.S. goods take effect	Includes steel and aluminum products

Metals: still the heaviest exposure

Steel, aluminum and copper have carried the highest U.S. rates since mid-2025. The June 1, 2026 proclamation, effective June 8, kept 50% on most core metal articles while shifting some goods to category-specific rates, according to PwC Canada. Products with 15% or less steel, aluminum or copper content now face 0%. PwC also flags that Section 232 duties can stack with other charges, so exporters need to check the order in which tariffs apply.

Goods already under Section 232 were exempted from the new Section 338 tariffs. That means metals did not get a second 50% layer, but they also got no relief.

Energy, potash and critical minerals

The 10% IEEPA tariff on non-CUSMA energy and potash ended with the February 20 ruling. Law firm Osler noted that about 90% of Canadian exports already qualified for CUSMA exemptions, so the practical relief was limited.

The White House fact sheet on the July 2026 Section 338 action lists energy products, potash and certain goods including critical minerals among the exemptions. The targeted sectors were motor vehicles, alcoholic beverages and dairy, with over 550 tariff subheadings covered, according to Butzel Long. Unlike earlier actions, CUSMA origin does not exempt goods from Section 338 duties.

The Bank of Canada’s Governing Council said the new U.S. tariffs cover roughly 5% of Canadian exports, and that the direct impact on the whole economy would likely be modest.

How the legal tools changed

The 2026 story is partly about which U.S. statutes are in use. In 2025 the broad Canada tariffs rested on the International Emergency Economic Powers Act (IEEPA). The Supreme Court’s 6 to 3 ruling on February 20, 2026 removed that option.

The administration then used Section 122 of the Trade Act of 1974, which allows a surcharge for up to 150 days without Congress. That surcharge ran from February 24 to July 24, 2026. On expiry, new Section 301 tariffs took effect at 12:01 a.m. on July 24, with a 10% rate for Canada, according to law firm Honigman. Both regimes kept the exemption for CUSMA-qualifying goods.

Section 338 of the Tariff Act of 1930 is different. It is a rarely used statute, and the July 2026 proclamations apply to covered goods regardless of CUSMA origin. That is why the August action hit harder in the sectors it targeted, even though it spared energy, potash and critical minerals.

CUSMA review status

At the July 1, 2026 joint review, the United States declined to extend the agreement. Canada and Mexico supported a 16-year extension. Under Article 34.7, that triggers annual joint reviews through 2036. Without an extension the agreement expires on July 1, 2036. Preferential tariffs and rules of origin remain in force, according to White & Case. An extension can still be agreed at any time by written confirmation from the three leaders.

The U.S. and Mexico have held bilateral rounds. As of the White & Case summary, Canada had not begun text-based negotiations with the U.S. Canada later suspended talks after the August tariffs. Minister François-Philippe Champagne said: “When the United States asked too much and offered too little, we chose to stand up for Canadians.”

By the numbers

U.S. Section 338 tariff: 50% on C$27.6 billion of Canadian goods, per Canada’s Department of Finance. U.S. law firm Butzel Long put it at approximately US$20 billion of Canadian imports.
Canadian counter-tariffs: C$27.6 billion of U.S. imports, matching dollar for dollar.
New support package: C$7.5 billion, including C$3.5 billion for worker and employer supports, C$2 billion for a Canada Strong Diversification Fund, C$1.5 billion for a Regional Tariff Response Initiative and C$500 million through BDC.
Share of Canadian exports hit by the new U.S. tariffs: roughly 5%, per the Bank of Canada.

Canada’s counter-tariffs cover the same C$27.6 billion value the Department of Finance attributes to the U.S. action, and they apply to U.S.-origin goods only.

What to watch

Any resumption of Canada and U.S. negotiations, and any written CUSMA extension.
The next annual CUSMA joint review, due by July 1, 2027.
Further Section 232 proclamations on metals or new product categories.
Changes to Canada’s counter-tariff list, published by the Department of Finance.
The Bank of Canada’s October 28, 2026 Monetary Policy Report, which will include its tariff assumptions.

Sources

Frequently asked questions

What tariffs does the US charge on Canadian metals in 2026?

Steel, aluminum and copper remain under US Section 232 tariffs. A restructured framework effective June 8, 2026 kept 50% on most core steel, aluminum and copper articles, shifted some goods to category-specific rates, and set 0% for products with 15% or less metal content. Goods under Section 232 were exempted from the later Section 338 tariffs.

Are Canadian energy and critical minerals subject to US tariffs in 2026?

The 10% IEEPA tariff on non-CUSMA energy and potash ended with the US Supreme Court ruling on February 20, 2026. The White House fact sheet on the July 2026 Section 338 action lists energy products, potash and certain goods including critical minerals among its exemptions. That action instead targeted motor vehicles, alcoholic beverages and dairy.

What happened at the 2026 CUSMA review?

At the July 1, 2026 joint review, the United States declined to extend CUSMA, while Canada and Mexico supported a 16-year extension. That triggers annual joint reviews through 2036, and without an extension the agreement expires July 1, 2036. Preferential tariffs and rules of origin remain in force. Canada later suspended negotiations after the August tariffs.