Disclaimer: For informational purposes only - not legal, tax, accounting, or customs/trade compliance advice. Tariff rates and relief programs change frequently; confirm current requirements with the CBSA, a licensed customs broker, or the relevant government agency before making business decisions. Full disclaimer below.

Table of Content

• The latest on tariffs right now
• What is a tariff?
• What do tariffs mean for businesses?
• Who pays tariffs on imports?
• Industries most affected
• Where to find current rates and relief programs
• 9 Tips for Canadian businesses to prepare for tariffs
• Staying resilient with Intuit QuickBooks
• FAQ

Canadian businesses are navigating a shifting landscape in the U.S.–Canada trade relationship.

For small business owners, the conditions continue to shift. Rising costs remain the top challenge cited by small businesses in Intuit's QuickBooks Small Business Insights survey, and tariffs are a direct driver of that pressure — affecting margins, disrupting supply chains, and forcing pricing decisions almost overnight.

Whether you run a small retail store or a manufacturing company, understanding where tariffs currently stand — and where they're headed next — is essential to protecting your bottom line.

The latest on tariffs right now

As of August 2026, the U.S. applies 50% duties to approximately $20 billion in Canadian goods, including building materials, certain clothing categories, and alcohol. Effective September 8, 2026, Canada applies duties of 15% to 50% on roughly 700 categories of U.S. goods worth about $27.6 billion, including steel, dairy, appliances, farm equipment, pulp and paper, and electronics. Steel and aluminum duties are 50% on both sides, with 25% on derivative products.

Rates and covered goods have changed several times since 2025 and may change again. Confirm current requirements with the CBSA or a licensed customs broker before you set prices or place an order.

For Canadian businesses, the message remains the same as it has for over a year—trade conditions continue to change, and flexibility can help businesses adapt. If anything, the case for building in contingency planning is stronger now than it was a few months ago.

What is a tariff?

A tariff, put simply, is a tax imposed on imported goods. Governments use tariffs to protect domestic industries, generate revenue, or influence trade negotiations. Essentially, there are three types of tariffs that Canadian businesses should factor into their supply chain decisions:

1. Protective tariffs: Designed to make imports costlier and give local industries a price advantage
2. Retaliatory tariffs: Imposed in response to another country’s tariffs
3. Revenue tariffs: Introduced primarily to raise money for government operations

What do tariffs mean for businesses?

The Canada-U.S. trading relationship is substantial in scope and size. With roughly 75% of Canada's exports travelling south of the border, tariffs are a major factor for companies across the board, in several ways:

• Profit margins decrease when businesses pay more for goods, materials, or services from other countries.
• Cash flow becomes tighter because businesses need more working capital to cover higher upfront costs.
• Pricing strategies change as businesses weigh whether customers will accept price increases.
• Supply chain contracts get renegotiated when costs exceed the terms both sides originally agreed to.

Consider a Canadian company shipping auto parts to Detroit. If tariffs push raw steel prices up 50%, this company's production costs rise sharply — and unless the cost can be passed along, profitability shrinks fast.

Who pays tariffs on imports?

Importers pay tariffs when goods cross the border, and the costs typically ripple outward from there:

• Scenario #1: A Canadian retailer importing $200K in U.S. appliances may face an additional $50K–$100K in tariff charges given current 50% rates. Unless it raises prices, margins collapse.
• Scenario #2: A U.S. automaker sourcing Canadian steel may cut jobs or scale back production if tariffs add $1M or more to material costs.
• Scenario #3: A cross-border boutique importing U.S. apparel might pivot to Canadian or overseas suppliers — though switching takes time and money.

Bottom line: businesses and consumers on both sides of the border ultimately feel the impact of higher tariffs.

Industries most affected

Some sectors continue to see greater impact than others:

• Automotive and metals manufacturing
• Retail and consumer goods
• Food and beverage
• Agriculture
• Electronics

Where to find current rates and relief programs

Federal and provincial governments have continued to expand support. You can learn more about how the Canadian federal and provincial governments are responding.

9 tips for Canadian businesses to prepare for tariffs

1. Assess your supply chain: Identify which suppliers are exposed to tariffs and research Canadian or lower-tariff alternatives.
2. Find backup suppliers: Diversify suppliers across multiple jurisdictions so no single trade relationship determines your input costs, or renegotiate terms and bulk discounts with existing suppliers. Consider ways to strengthen your supply chain strategy more broadly.
3. Adjust pricing strategically: If you need to raise prices, consider a gradual approach or bundling to keep customers satisfied. See our guide on how to announce a price increase.
4. Diversify revenue streams: Diversify your customer base geographically to reduce concentration risk
5. Integrate automation: Use automation to protect margins and improve cost-efficiency.
6. Prioritize business efficiency: Tools like QuickBooks help you stay on top of finances even in a volatile trade environment — especially for mid-sized businesses managing more complex supply chains.
7. Review cash flow and pricing regularly: Given how quickly rates have changed in 2026, revisit your cash flow model at least monthly, not just annually.
8. Monitor government support programs: New relief measures have rolled out multiple times in 2026 — staying informed means not missing funding you're eligible for.
9. Apply for tariff relief: Use Canada's remission process to request relief from tariffs where no domestic alternative supplier exists. On top of the small business loans available in Ontario, eligible companies hit by tariffs can access loans through the Protect Ontario Financing Program, which offers up to $1B to support the steel, aluminum, and auto sectors. 

Staying resilient with Intuit QuickBooks

The environment continues to change as it's been at any point in this dispute. Businesses that plan ahead and revisit those plans often are best positioned to weather it.

Whether you're managing rising costs, shifting suppliers, adjusting prices, or applying for relief programs, QuickBooks Online helps you manage your cash flow and track overhead costs in real time, so you can make decisions with current numbers instead of guesswork.

Get tools to help you navigate changes — find an Intuit QuickBooks plan that's right for your business.

Disclaimer

Full disclaimer: 

Published [September 2, 2026]. Last reviewed for accuracy [September 2, 2026]. This article summarizes publicly available information as of that date. Given the pace of change in the Canada-U.S. tariff dispute, rates, product coverage, and program details may have changed since publication - always verify current requirements against the linked government sources, the CBSA, a licensed customs broker, or the relevant government department or agency administering a given program, before acting.

Dollar figures used in examples throughout this article are illustrative only and do not reflect the actual costs or tariff exposure of any particular business.

This content is for information purposes only and should not be considered legal, accounting, tax, or customs/trade compliance advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by region, province, or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable for dealing with a customer's particular situation. Intuit does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.

This article describes the current state of the Canada-U.S. tariff dispute and available government responses; it does not reflect any position by Intuit on trade policy.

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