In late August 2026, a phone call between Canadian and US trade negotiators ended in acrimony when the United States introduced last-minute demands that the Canadian side cited as being “uneconomic, unfair and called into question the reliability of any deal.” The talks imploded, and in just a few hours, the U.S. administration revived a tariff that hasn’t been used in close to a century – Section 338 of the Smoot-Hawley Tariff Act of 1930 – in order to impose what can be deemed as a prohibitive tax on Canadian goods that totals in the billions of dollars entering the United States. In return, the Canadian Prime Minister responded by calling the escalation “harmful to both our people and economies” while announcing immediate retaliation. This then prompted Trump to push back even further, suggesting that Lake Ontario be named Lake America, and vowing to increase the tariffs to a painfully high number if the Canadian Premier doesn’t step down with his threats against America.
If you’re an importer of Canadian goods or worldwide goods and materials for that matter, you must have watched the news briefing about this in total shock, thinking about how a small tiff became such a monumental conundrum that has simply decimated one of your trading partners, leaving you scrambling and paralyzed, worried about the prospect of monumental losses from the unreasonable tariffs being proposed and implemented. This is just but one of the jabs the current administration has taken against many trading partners around the world, with the most famous action being the IEEPA tariffs which were later reversed. In this post, we’ll take a look at the specifics of the US Canada trade ways, suggest ways in which you can protect your supply routes and trading relationships, as well as provide you with legal reprieve you can implement to protect your overall bottom line as an importer of note based in America.
Are you looking for a best IEEPA refunds attorney? Please call us NOW at (314) 481-63338 to learn more about your legal options for justice and compensation as they relate to IEEPA refunds and the process. McCready Law is proud to announce that we have joined forces with Frost Law Arizona to help corporations and businesses that were unlawfully levied duties against during the February 2025 to February 2026 period, and thanks to the Supreme Court ruling, the government was ordered to pay back all these duties to over 300,000 affected businesses across the country. Our strategic partnership means we are able to assess your claim, consolidate your entries via an in-depth forensic audit to discover just how much the government owes you, file protective orders on your behalf, and even litigate your claim in front of the Court of International Trade should the government become recalcitrant about processing your IEEPA refunds. We offer the forensic audit at NO CHARGE as well as a 100% FREE initial consultation phone-call, and we work efficiently and ensure all your valid entries are presented as a complete dossier to CBP and relevant authorities, leaving you to focus on more pressing business matters. Need assistance with IEEPA refund rejections or processing? Call us NOW at (314) 481-63338 to speak with an experienced attorney and tax experts at no cost to you.
The US Canada Trade War – Why This is Different
The administration, it is important to note, has invoked four different tariffs in just one and a half years. While IEEPA was struck down by the Supreme Court, Section 122 tariffs eventually expired organically, and Section 301 is being challenged in court. However, Section 338 of the Smoot-Hawley Tariff Act of 1930 is different: it was passed by Congress, signed into law, and was never repealed. Therefore, it is vital to understand that this is neither a temporary emergency measure, nor can it be overturned easily since it is a Congress-enacted statute, regardless of the fact that it has been dormant for 96 years.
What Importers Relying on Canadian Suppliers Need to Know
If you rely on our northerly neighbor on things like aluminum, dairy, steel, auto parts and electronics or any of the other over hundred products that these new tariffs target, it is in the best interest of your company to act with haste.
Here’s exactly what you need to do in order to protect your margins and your supply chain:
- Audit your supply chain in order to identify which of your imports are affected by the new Canada tariffs so you can have a clear picture of your total exposure.
- It might also be wise to start qualifying alternative suppliers in countries that aren’t affected by these tariffs such as Mexico, India and Vietnam. However, it would be prudent of you to act quickly since your competitors are doing the same thing.
- Monitor litigation surrounding Section 338 and if the courts reverse it, you may be entitled to refunds. However, it is wise to file protective protests now so you can preserve your rights.
Best Trade Tariffs Attorneys – Call Us Today!
However, the most important thing you can ever do is to contact us, McCready Law right now at (314) 481-63338 so we can perform a no-cost forensic audit of your imports and together with Frost Law Arizona, develop a legitimate tax controversy and litigation strategy to protect your future and overall bottom line in the import business. Remember, the call is 100% FREE, and there is no legal obligation. Thanks for choosing McCready Law, and we look forward to helping you.