CIAC Responds to New U.S. Tariffs on Canadian Goods 

August 24, 2026

The implementation of new U.S. tariffs on Canadian goods will create significant challenges for Canadian manufacturers, including companies in Canada’s chemistry and plastics sector. 

For Canadian manufacturers affected by the new tariffs, the immediate issue is competitiveness. Tariffs of this magnitude can significantly increase the cost of Canadian products in the U.S. market, putting established customer relationships, production, employment and future investment at risk. In some cases, companies may face difficult decisions about whether Canadian production serving the U.S. market can remain commercially viable. 

The Chemistry Industry Association of Canada (CIAC), believes Canadian companies facing significant tariff-related impacts may require timely and meaningful financial support from the federal government to help maintain operations, protect jobs and preserve investment in Canada while a longer-term resolution is pursued. 

That support will need to be practical, accessible, and responsive to the circumstances facing individual companies. This could include measures to address short-term liquidity pressures, access to financing, trade diversification support and investment support that helps companies maintain production and capital investment in Canada. As Canada develops its retaliatory tariff package it is critical that the government consult with industry and should be ready to consider tariff remission where appropriate. 

Canada and the United States have built one of the most integrated manufacturing relationships in the world. For Canada’s chemistry and plastics sector, more than $115 billion in products are traded between our countries each year, with materials often crossing the border multiple times before becoming finished goods. These relationships have made the North American economy stronger and more diversified. 

Governments negotiate trade deals, but it is millions of customers and companies that put them into practice. Our priority is maintaining a competitive Canadian chemistry and plastics manufacturing sector and preserving the highly integrated North American supply chains that support businesses, workers and customers on both sides of the border. CIAC supports the Government of Canada’s continued efforts to engage with the United States and secure relief for affected Canadian products. We strongly urge both governments to continue negotiations to reach a long-term agreement so Canadians and Americans can continue building the strongest economies in the world.