Tracking tariff developments and resources for BC local government finance professionals. Last updated July 21, 2026.
U.S. tariffs continue to reshape the economic landscape for local governments in British Columbia. Higher tariffs on materials like steel, aluminum, and copper are driving up infrastructure and procurement costs, while trade restrictions are creating uncertainty across key industries and putting pressure on local tax revenues and budgets.
This page tracks key developments and provides resources to help local government finance professionals navigate the ongoing trade environment.
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Key Developments
July 20, 2026: President Trump signed three proclamations imposing an additional 50% tariff on certain Canadian goods under Section 338 of the Tariff Act of 1930, the first use of that provision in its history. The tariffs cover nearly 500 product categories worth roughly US$20 billion in annual imports, including construction materials, machinery, dairy, alcohol, and furniture, and apply to goods previously protected under CUSMA. Energy products, potash, fish, and critical minerals are excluded. The tariffs take effect August 19, 2026. (NPR, CBC News)
July 1, 2026: The mandatory CUSMA Joint Review began with a trilateral meeting of Canadian, American, and Mexican officials. The U.S. declined to agree to a 16-year extension, triggering an annual review process. The agreement remains fully in force until 2036, but the outcome introduces prolonged uncertainty for cross-border trade. (Global Affairs Canada, CBC News)
June 3, 2026: Canada announced a one-year extension of its steel and aluminum tariff remission measures, now running to June 30, 2027. Eligible goods include those used in auto and aerospace manufacturing and for public health, public safety, and national security purposes. (Department of Finance Canada)
June 2, 2026: The USTR issued findings in its Section 301 forced labour investigations covering 60 economies, determining that Canada has failed to effectively enforce its import prohibition. The USTR proposed a 10% tariff on Canadian goods, with CUSMA-compliant goods exempt. Public comments closed July 6 and hearings were held July 7. (USTR, Fasken)
May 7, 2026: The U.S. Court of International Trade ruled the 10% Section 122 tariff unlawful in Oregon v. Trump and Burlap & Barrel, Inc. v. Trump, but limited relief to the plaintiffs in those cases. The government appealed and obtained a temporary stay, so the tariff continues to be collected until its 150-day term expires on July 24, 2026. (Davis Wright Tremaine)
April 20, 2026: U.S. Customs and Border Protection launched the CAPE refund processing system. Importers of record who paid IEEPA tariffs on non-CUSMA goods between February 4, 2025, and February 24, 2026, may now be eligible to file refund claims. (CFIB)
April 6, 2026: A revised Section 232 proclamation took effect, raising tariffs on core steel, aluminum, and (newly added) copper articles to 50%, with certain derivative goods at 25%. Tariffs now apply to the full value of imported goods rather than only the metal content, with a 15% de minimis exemption. The expansion materially increases costs for infrastructure materials. (PwC Canada)
March 24, 2026: Canadian industries hit by targeted U.S. tariffs (steel, lumber, cabinets) report running at reduced capacity as the trade war enters its second year. The Canada Wood Products Alliance is pushing the federal government for safeguard measures against surging imports from other countries blocked from the U.S. market. (BNN Bloomberg)
March 5, 2026: The governments of Canada and British Columbia announced a $70.4 million partnership to support tariff-impacted workers through WorkBC, including retraining, upskilling, and employment assistance for workers in affected industries and communities. (Canada.ca)
February 24, 2026: Following the Supreme Court ruling, President Trump issued a new executive order imposing a 10% tariff on goods from all countries under Section 122 of the Trade Act of 1974, with exemptions for certain products. (Tax Foundation)
February 20, 2026: The U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. This struck down the original tariffs on Canada, Mexico, and China imposed under IEEPA authority, as well as the "reciprocal" tariffs on other countries. (Holland & Knight)
February 17, 2026: B.C. Budget 2026 was tabled amid ongoing tariff uncertainty. The budget includes $50 million for forestry to navigate tariff challenges, a new $400 million Strategic Investments Special Account, and measures to support affected industries. (B.C. Budget 2026)
February 12, 2026: The U.S. House of Representatives voted 219–211 to end tariffs on Canadian goods, with several Republicans crossing party lines. The bill still requires Senate approval and faces a likely presidential veto. (Al Jazeera)
2025 background: The trade war began in early 2025 with tariffs imposed under IEEPA authority, escalating to a 35% tariff on Canadian goods in August 2025 (Tax Foundation). B.C. launched its tariff response hub in March 2025, UBCM's Executive responded in April 2025, and GFOABC hosted a KPMG webinar on tariff implications for BC. These IEEPA-era tariffs were struck down by the Supreme Court in February 2026.
Resources
Canada-U.S. Trade Hub (CFIB), including Work-Sharing program details and a provincial response tracker
U.S. Tariff Overview: Questions, Findings and Considerations (GFOABC)
Canada's Response to U.S. Tariffs (Government of Canada)
B.C.'s Response to Unjustified U.S. Tariffs (Province of B.C.)
U.S.–Canada Tariffs: Timeline of Key Dates and Documents (Blakes)
Canada Tariff Finder: find applicable tariffs on products
Tariff Tracker: 2026 Trump Tariffs & Trade War by the Numbers (Tax Foundation)
What to Watch
Section 338 Tariffs (Effective August 19, 2026): The new 50% tariffs do not take effect for 30 days, leaving a window for negotiation between Ottawa and Washington. Because Section 338 has never been used to impose tariffs, a legal challenge is widely expected. Watch for Canada's response, including possible new counter-tariffs, and for cost impacts on construction materials, machinery, and equipment relevant to capital projects.
Section 122 Expiry (July 24, 2026): The 10% global tariff reaches the end of its 150-day statutory term on July 24 and cannot be extended without an act of Congress. The government's appeal of the May 7 court ruling continues at the Federal Circuit, and its outcome will determine whether importers who paid the tariff are ultimately entitled to refunds.
Proposed Section 301 Tariff: The USTR's proposed 10% tariff on Canadian goods is expected to be finalized close to the July 24 expiry of the Section 122 tariff, effectively replacing it. Because CUSMA-compliant goods are exempt, CUSMA certification is now a key factor in whether goods face the new duty. Watch for the final action and its effective date.
CUSMA Annual Review Track: With no extension agreed at the July 1 review, CUSMA now enters annual reviews until an extension is negotiated or the agreement expires in 2036. Trade observers do not expect a deal before the U.S. midterm elections this fall, meaning the uncertainty affecting supply chains, revenues, and capital planning is likely to persist through the year.
Steel, Aluminum & Copper (Section 232): The 50% tariffs on core articles, calculated on full import value, remain the most material cost driver for capital projects. Canada's remission on select U.S. steel and aluminum inputs has been extended to June 30, 2027, but local governments should continue to review procurement contracts and capital plans for exposure.