08/26/2026
Following a three-day delay, the United States’ additional 50 percent tariffs on targeted Canadian goods took effect on August 22, 2026.
The duties were imposed under Section 338 of the U.S. Tariff Act and apply even when covered products qualify under CUSMA. They are also added to any ordinary duties already applicable to the product, meaning the final effective rate will vary by classification.
For Canada’s horticulture sector, the affected list includes several categories: bulbs, unrooted cuttings, live orchids, fresh and prepared cut flowers, ornamental foliage, and certain seeds. Flowers Canada Growers estimates that approximately $210 million in annual Canadian floral exports to the United States are captured by the measures.
The impact will not be evenly distributed across the sector. It is concentrated most heavily among greenhouse floriculture and propagation businesses that depend on U.S. markets. Many of these products are perishable, require months of advance production and have narrow sales windows. Redirecting them to other markets is often not realistic.
The disruption also affects U.S. growers, retailers and distributors that rely on Canadian flowers and young plants. These supply chains have been built over decades and cannot be replaced quickly without reduced availability and higher costs.
Canada has announced countermeasures on $27.6 billion in U.S. products beginning September 8. The list is concentrated in sectors such as steel and aluminum, agricultural equipment, plastics, and electronics. Horticulture businesses importing these products should review their classifications and assess any additional cost exposure.
CNLA continues to advocate for a negotiated resolution, immediate working capital support for affected growers, and measures that protect long-term production capacity. It is also important that Canadian countermeasures avoid essential horticultural inputs such as plant genetics, bulbs and propagation material.
Members exporting covered products should confirm tariff classifications with their customs broker, review contracts and landed costs, and document any losses or cancelled orders. CNLA will continue working with sector partners and government officials as the situation develops.
More details on support measures can be found here: https://www.canada.ca/en/department-finance/news/2026/08/support-for-canadian-workers-and-businesses-affected-by-us-tariffs.html
