The Auto Care Association has put out a notice concerning new tariffs implemented by both the U.S. and Canada that could potentially impact auto repair businesses.

On Aug. 22, 2026, a 50% additional tariff on various Canadian-origin goods took effect. It was followed by Canada announcing its own countermeasures on U.S. goods beginning Sept. 8.

The new U.S. tariffs came from President Trump signing three proclamations under Section 338 of the Tariff Act of 1930: a statute permitting additional duties on goods from a country found to discriminate against U.S. commerce. The tariff applies regardless of whether a good qualifies as USMCA-originating, and USMCA preference does not exempt covered goods from this duty.

Covered goods include wine and other alcoholic beverages, cosmetics, ice skates, hockey sticks, fishing rods, cement, paper and wood products, honey, textiles and apparel, machinery, jewelry, and furniture, among other items. Excluded from the additional duty are goods already subject to Section 232 tariffs, including but not limited to: 

• articles of aluminum, steel, or copper and their derivatives
• passenger vehicles and light trucks
• parts of passenger vehicles and light trucks
• medium- and heavy-duty vehicles and their parts

ACA has recommended that its members confirm exact classification under the Harmonized Tariff Schedule against the official CBP guidance and HTS list, and consult their customs broker to determine specific product exposure.

Canada's Department of Finance has also announced counter-tariffs of 15%, 25% or 50% on a range of U.S.-origin goods, effective Sept. 8. Based on the published product list:

• Goods facing a 50% counter-tariff include steel and aluminum products (up from a previous 25% rate), furniture, and clothing and apparel.
• Goods facing a 25% counter-tariff include appliances, dairy products, and fish and seafood, along with certain steel and aluminum derivative products.
• Existing Canadian counter-tariffs on U.S. autos remain in place separately.
• These tariffs apply only to goods of U.S. origin and will not apply to shipments already in transit to Canada as of Sept. 8.

ACA is urging its members to review Canadian-origin components, materials, and finished goods against the official Section 338 HTS list to assess duty exposure, noting that USMCA-qualifying status does not provide an exemption. It also suggests reviewing any U.S. exports to Canada against Canada's published counter-tariff list ahead of the Sept. 8 effective date; and consulting with your customs broker on classification, valuation, drawback eligibility, and any applicable exclusions.

Members are cautioned to remain vigilant, as U.S. President Donald Trump has reportedly said he intends to double tariffs on Canadian cars, trucks, and auto parts to 50% beginning Jan. 1, 2027, though no formal proclamation has yet been issued.