Canada imposes 50% counter-tariff on US plastic bags and tableware

Canada's retaliatory tariff list, effective 8 September 2026, covers USD 19.5bn (CAD 27.6bn) of US goods and sets a 50% rate on polyethylene bags, plastic tableware and other plastic household articles. The move mirrors a US 50% tariff on about USD 20bn of Canadian goods under Section 338, in effect since late August, exposing roughly 20% of the USD 15bn two-way US-Canada plastics trade.

Why this mattersThe tariff pair forces Canadian buyers of US plastic packaging to absorb 50% duties or re-source outside the US, redirecting trade flows and adding cost pressure across the plastics supply chain.

• Canada's counter-tariff list, effective 8 September 2026, covers USD 19.5bn (CAD 27.6bn) of US goods at 15%, 25% or 50%.
• Polyethylene bags (HS 3923.21.90), plastic tableware and kitchenware (HS 3924.10.00) and other plastic household articles (HS 3924.90.00) face the top 50% rate.
• The US applies a matching 50% tariff under Section 338 to about USD 20bn of Canadian goods, in effect since late August, including goods meeting USMCA rules.
• Rabobank estimates about 20% of the roughly USD 15bn two-way US-Canada plastics trade is exposed to the US tariff.
• Moulds for plastic, metal and rubber products face a 15% rate.
• US plastic resin producer prices rose about 11% from April to May 2026, then fell about 10% by August; plastic bag prices remained 6% above year-earlier levels in August.

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