Canada-U.S. Business Brief

SEPTEMBER 3, 2026

Canada-U.S. tariff response

Canada sets counter-tariffs on $27.6 billion of U.S. imports

Canada says it will impose 15%, 25% and 50% counter-tariffs on selected U.S. products effective September 8, matching U.S. Section 338 and Section 232 tariff rates on affected Canadian goods. The list covers imports in sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Why it matters: Importers on both sides of the border should review product classification, sourcing and customs documentation before the measures take effect.

Sources: Department of Finance Canada

CUSBA ISSUED STATEMENT

A call to end the Canada-United States trade war

CUSBA has called for a suspension of the U.S. Section 338 tariff measures and the Canadian countermeasures announced in response, urging both countries to return to constructive negotiation.

Statement: Read the CUSBA statement

Canada / June retail trade

Canadian retail sales rise 0.6% in June

Statistics Canada reported that retail sales increased 0.6% to C$74.3 billion in June, with gains in seven of nine subsectors led by general merchandise retailers. The result provides an indicator of consumer conditions during a period of trade-policy uncertainty.

Why it matters: Canadian consumer demand is a practical signal for U.S. suppliers, retailers and logistics partners serving the market.

Sources: Statistics Canada release

United States / second-quarter GDP

U.S. GDP grows at a 1.5% annual rate in Q2

The Bureau of Economic Analysis' second estimate shows real U.S. GDP increased at a 1.5% annual rate in the second quarter of 2026, following 2.1% growth in the first quarter. Consumer spending, exports and investment added to growth, partly offset by lower government spending.

Why it matters: U.S. demand, investment and export conditions remain material to Canadian firms with U.S. customers and operations.

Sources: U.S. Bureau of Economic Analysis

BILATERAL GOODS TRADE

▲ $67.9B

June | +1.8% month over month

TRANSBORDER FREIGHT VALUE

▲ 15%

May | year over year

NORTHERN-BORDER TRUCK ENTRIES

▼ 5.27M

2025 | -5.1% year over year

CAD / USD

▲ US$0.7225

Per C$1 | +0.4% on Sept. 2

USMCA-COVERED CANADIAN IMPORTS

▲ $29.8B

June | +1.7% month over month

U.S. MANUFACTURING PMI

▲ 55.6

July | up from 53.3

U.S. MONTHLY DEFICIT

▲ $432B

July | up from $120B in June

10-YEAR BOND YIELDS

CA 3.70% | U.S. 4.71%

▲ CA +9 bps | ▲ U.S. +2 bps since Aug. 6

Canada / monetary policy

Bank of Canada holds policy rate at 2.25%

The Bank of Canada held its target for the overnight rate at 2.25%, with the Bank Rate at 2.50% and the deposit rate at 2.20%. The decision comes as businesses continue to assess the effect of tariffs and other trade uncertainty on costs and demand.

Why it matters: Stable borrowing costs give cross-border companies one clearer input for near-term capital, inventory and currency planning.

Sources: Bank of Canada release

Canada / rail freight

Canadian rail freight rises for a third consecutive month

Canadian railways carried 30.9 million tonnes of freight in June, up 3.2% from a year earlier and the third straight monthly increase. Higher grain and other commodity loadings, as well as more traffic from U.S. rail connections, contributed to the increase.

Why it matters: Rail volumes are a useful operating signal for commodity, industrial and intermodal supply chains connected to the U.S.

Sources: Statistics Canada release

United States / border freight

North American truck freight value rises 23% year over year

Truck freight moving between the United States, Canada and Mexico increased 23% year over year in June, according to reporting based on U.S. cross-border freight data. The growth outpaced the increase in overall North American cross-border trade.

Why it matters: The trend reinforces the importance of dependable capacity and border processing for time-sensitive North American supply chains.

Sources: Truck News report

Canada / critical minerals

C$2 billion investment advances Ontario nickel production

The Onaping Depth Project at Glencore Canada's Craig Mine in Greater Sudbury has reached first access to nickel ore, with first production expected later this year. The nearly C$2 billion expansion is expected to extend the mine's supply of high-grade nickel beyond 2040.

Why it matters: Canadian nickel supply supports the battery, advanced-manufacturing and national-security value chains shared with U.S. partners.

Sources: Government of Ontario release

United States / automotive suppliers

Automotive suppliers focus on affordability and operational agility

Plante Moran identifies practical priorities for automotive suppliers as affordability pressures reshape vehicle design and purchasing decisions, including data-led automation, cost discipline and protecting the features customers value most. The analysis focuses on preserving competitiveness while reducing hidden complexity and inefficiency.

Why it matters: The cost pressures facing U.S. suppliers also affect the deeply integrated Canadian automotive supply base.

Sources: Plante Moran analysis

MSU Canadian Studies Center | September 16

CN Forum 2026: Accelerating Innovation through Critical Infrastructure

The 2026 CN Forum will bring business, policy and binational leaders to the MSU Henry Center to examine Great Lakes infrastructure, automotive manufacturing, trade, next-generation fuels and the future of mobility.

Plante Moran webinar | October 8

Navigating transfer pricing controversy: Audits, APAs and MAPs

Plante Moran's 10:00-11:30 a.m. ET webinar will cover transfer-pricing audit defense, advance pricing agreements and mutual agreement procedures, with perspectives from the IRS, the United States, Mexico and Italy.

Why it matters: The session is directly relevant to multinational businesses managing cross-border tax risk and potential double taxation.

Sources: Event details and registration