In our Tariff Tracker Update for 17 September 2026:
- Canada enacts new tariffs on U.S. goods, prompting further U.S. trade restrictions in retaliation
- U.S. enacts 100% tariff on many imported drones
- U.S. delays tariffs on refined copper products and temporarily reduces tariffs on beef
Deteriorating U.S.-Canada trade relations
August 22, 2026
Over the past several weeks, U.S.-Canada trade relations have deteriorated drastically. The U.S. imposed tariffs of up to 50% on a range of Canadian imports on August 22 after trade negotiations collapsed.
Among the sticking points in talks, the U.S. was reportedly unwilling to make concessions on steel, aluminum, automotive, and lumber products, while also expressing dissatisfaction with Canadian trade laws and domestic protections for the French language.
September 9, 2026
In response, Canadian officials announced retaliatory tariffs of up to 50% on hundreds of U.S. products. These came into effect on September 9. These tariffs target American goods in a variety of sectors, including steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronics.
In response, on September 9, the U.S. announced a total ban on the import of motorcycles, various alcoholic beverages, and certain dairy products from Canada. The U.S. also raised tariffs on Canadian cheese, steel, aluminum, and bamboo furniture to 50%. The U.S. will implement these measures on September 29.
Separately, the U.S. terminated existing tariffs on Canadian toilet paper, cement, and fishing rod parts following government impact assessments.
Additionally, the U.S. has threatened to impose 50% tariffs on all Canadian automotive imports. These include trucks and auto parts, as well as steel, beginning on January 1, 2027. Furthermore, the U.S. has separately threatened to ban Canadian Bombardier aircraft imports at an unspecified date.
Amid the increased trade hostility from the U.S., Canadian officials have pledged to diversity the country’s economy and reduce its economic dependence on the U.S.
Some officials within Canada have openly suggested that Canada could retaliate by restricting energy exports to the U.S. If Canadian officials enact the restrictions, they could severely disrupt the U.S. Canadian products comprise over half of all U.S. imports of oil, natural gas, and electricity.
However, Canadian Prime Minister Mark Carney has so far declined to pursue energy export restrictions. These measures could also hurt the Canadian economy.
U.S. enacts 100% tariffs on drones
On September 3, the U.S. enacted 100% tariffs on imports of drones that weigh more than 55 pounds (24.9 kilograms) or use thermal imaging. The U.S. will impose a 25% tariff on other drones. The measure is likely intended to target China, where most of the affected drones are produced.
The U.S. will exempt imports from select countries that have reached reciprocal trade deals capping the tariff rate. Under this exemption, drones from the E.U., Japan, South Korea, Switzerland, and Taiwan will be charged a 15% tariff,. Drones from the U.K. will be charged a 10% tariff.
U.S. delays copper tariffs and temporarily reduces beef tariffs amid affordability concerns
President Trump previously announced plans to charge tariffs on refined copper products. However, his administration has reportedly decided to delay the measure until an unspecified date.
The U.S. Department of Commerce has completed its investigation of the potential tariffs. The Department delivered its results privately to the White House before June 30. After this, the Trump administration was expected to announce a decision on the measure.
However, officials have since indicated that no decision has been made at the time of writing amid concerns that further tariffs could drive up manufacturing costs and increase the cost of living within the U.S. further. If enacted, 15% tariffs would go into effect on January 1, 2027, and the tariff rate would be doubled to 30% in 2028.
Additionally, President Trump signed an executive order on August 21 to temporarily lower tariffs on imports of beef products. The order will decrease tariffs on 300,000 metric tons of imported beef for 90 days to lower domestic beef prices.
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