Articles October 5, 2026 4 min read

Recent Tariff Developments: Canada, IEEPA Refunds and Russian Energy

Andrew DeSimone

Mukul Chhabra

Global Transfer Pricing Strategies

International Services

Industrial and Consumer Products

Manufacturing and Distribution

Transportation and Logistics

Recent tariff developments could affect importers through additional U.S.-Canada trade measures, the next phase of the IEEPA refund process and new authority involving Russian energy trade. Businesses with exposure to these measures should review the applicable effective dates, eligibility requirements and potential supply chain implications.

US-Canada Trade and Tariff Escalation

The US-Canada trade conflict has escalated significantly over the past month, marked by the rollout of retaliatory tariffs and warnings of slowing economic growth. Key U.S. and Canadian actions include:

On July 20, 2026, U.S. President Donald Trump signed three proclamations targeting different sets of Canadian imports with an additional 50% tariff under Section 338 of the Tariff Act of 1930 (Section 338) in response to alleged trade discrimination against three separate categories of U.S. products and industries — motor vehicles, alcohol and dairy. See Withum’s previous article here: Recent Trade and Tariff Updates: USMCA, IEEPA Refunds and New Tariff Action.
As a result of the U.S.’s decision to impose a 50% tariff on $27.6 billion of Canadian goods import, the Canadian Prime Minister announced that, effective September 8, 2026, Canada’s administration will impose dollar-for-dollar retaliatory tariffs ranging from 15% to 50% on over 700 U.S. products (affecting roughly $27.6 billion in American imports).
The new targeted Canadian counter tariffs are concentrated in sectors such as steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics. In certain sectors, such as steel and aluminum, existing counter-tariffs will increase from 25% to 50% to match U.S. rates. Other existing counter-tariffs, including against U.S. autos, will also continue to apply.
President Trump responded to Canada’s September 8 counter-tariffs by signing five new Section 338 proclamations. These orders introduced outright import bans on specific Canadian goods (including most alcoholic beverages, whey/dairy and motorcycles) effective September 29, 2026. Furthermore, effective September 15, 2026, additional products, including paper, furniture, cheese, leather, motorboats, golf carts, steel, aluminum and base metal products, were added to the 50% tariff category list.

IEEPA Tariff Refunds Progress – Cape Phase 3 Launches Soon

U.S. Customs and Border Protection (CBP) is preparing to launch Phase 3 of its Consolidated Administration and Processing of Entries (CAPE) system on October 6, 2026. CAPE is the platform CBP is using to administer refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) following the Supreme Court’s decision striking down those duties. Phase 3 will cover finally liquidated entries, generally those liquidated for more than 80 days, filed by plaintiffs for which the U.S. Court of International Trade (CIT) has ordered reliquidation. According to a CBP status declaration filed with the CIT on September 15, 2026, the deployment remains on track.

CBP’s current framework does not offer a universal, blanket refund for all historical IEEPA entries. To participate when the portal opens on October 6, importers must meet narrow requirements:
- Pending CIT Litigation: Importers must be active plaintiffs in a pending CIT lawsuit seeking these refunds and must have already secured a specific CIT reliquidation order.
- July 30 Deadline: Only plaintiffs who submitted a valid Importer of Record (IOR) number to CBP by July 30, 2026, are cleared to begin filing declarations on the system immediately.
For litigating plaintiffs who submitted their IOR number to CBP after the July 30, 2026, cutoff, CBP has stated it will issue a separate set of instructions outlining how to proceed.
As of mid-September, CBP has already completed approximately $122 billion (of the roughly $166 billion of IEEPA tariffs due to be refunded) in refunds through the system’s first two phases. See Withum’s previous article here: Recent Trade and Tariff Updates: USMCA, IEEPA Refunds and New Tariff Actions.

The broader issue of whether non-litigating importers can eventually claim refunds for finally liquidated entries remains tied up in ongoing government appeals. Trade attorneys strongly recommend that affected businesses that have not yet pursued independent court action consult legal counsel. Relying solely on future appellate decisions or class-certification outcomes carries significant risk, especially given the two-year statute of limitations windows for older entries.

New 100% Russian Energy Tariff

On September 18, 2026, President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law. The legislation grantsthe U.S. executive branch the authority to levy ad valorem tariffs of up to 500 percent on imports from Russia and 100% on imports from the top five buyers of Russian crude oil or gas.

India and China are among the countries most likely to be affected given their status as major importers of Russian crude oil. While the 100% tariff has not been immediately executed, its passage acts as a geo-economic lever that complicates ongoing trade deals.

These duties would be in addition to other applicable duties, including Section 301, Section 232 and AD/CVD.

Conclusion

Recent developments highlight how quickly the global trade landscape continues to evolve. Businesses with import exposure should continue monitoring regulatory, judicial and policy developments that may affect costs, compliance obligations and supply chain planning.

Navigate New Global Trade and Tariff Environment

Increasing tariffs signify a substantial shift in global trade policy. Withum can assist your business in creating an actionable plan to drive decision-making using our proprietary scenario modeling tool and our expertise in global trade, supply chain, transfer pricing and tariffs.

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