Ottawa strikes back Sept 8 — $27.6B in tariffs hit your business (plus 3 Quebec files you can’t miss)

Banks Avocats Newsletter — Thursday, September 3, 2026

Hi there,

The trade war is entering a new phase: starting September 8, it’s Canada’s turn to hit back with its own tariffs on US goods. While everyone watches the big trade standoff, three homegrown Quebec files deserve your attention this week: an emergency aid program for tariff-hit SMEs that just got refreshed, a CNESST bill jumping 11% for 2027, and a one-year check-in on Quebec’s interprovincial trade law — a still-underused escape hatch just as the US market gets pricier. Five minutes, coffee in hand.

Quebec

1. Emergency aid for tariff-hit SMEs: the program was just updated (September 1)

The Emergency Assistance Program for SMEs – Tariffs, refreshed as of September 1, remains one of the most concrete tools available to Quebec businesses caught in the US tariff crossfire. Loans go up to $150,000, covering 75% of your 12-month liquidity needs, at 0% interest for the first year (3.86% after that), with a 12-month repayment moratorium and up to 60 months to pay it back. To qualify: be a for-profit business legally incorporated in Quebec or Canada, registered in Quebec’s enterprise register for at least 2 years with headquarters here, show annual revenue between $200,000 and $2 million, demonstrate that at least 25% of your 2024 revenue came directly or indirectly from US exports, and show a revenue drop of 20% or more (actual or projected). You also need to have been profitable in at least one of the last two fiscal years, and commit to filing a business adaptation plan within 12 months.

Do this week: Check your eligibility and contact your local MRC or economic development office — funding for programs like this tends to dry up before the official deadline (the program itself runs through March 31, 2028, but don’t count on that cushion).

2. Your CNESST bill jumps 11% in 2027 — start planning now

Quebec’s average CNESST contribution rate is rising from $1.54 to $1.71 per $100 of payroll in 2027 — an 11% increase that the Conseil du patronat pegs at roughly $400 million in added costs for Quebec employers. The CPQ, the FCCQ, and the FCEI have all pushed back hard, with the FCCQ noting it effectively cancels out recent small-business tax cuts, and the FCEI pointing out Quebec SMEs already carry the highest payroll taxes in the country. All three are demanding a structural review of the system.

Do this week: Build this increase into your 2027 budget forecasts now, and double-check with your accountant or the CNESST portal that your classification unit (rates vary by sector) is still the right one — a misclassification can mean you’ve been overpaying for years.

3. One year into Quebec’s interprovincial trade law — where things actually stand

Bill 112, formally the Act to promote the trade of products and the mobility of the workforce from other provinces and territories of Canada, has been in force since October 30, 2025 — so this isn’t breaking news, but its usefulness is landing harder now that businesses are looking for markets beyond the US. The core idea: a product that meets another province’s standards can be sold or used in Quebec without extra Quebec-specific requirements, except for categories the government excludes by regulation (a public list that’s still evolving). A worker licensed in another province can also get Quebec recognition without extra training, exams, or evaluations — though exact processing timelines are still to be set by regulation, sector by sector. When the law was adopted, Minister Christopher Skeete noted that 60% of Quebec businesses do zero business anywhere else in the country — the door is open, but still largely unused. A La Presse report published August 28 confirms barriers are easing, but real challenges remain for SMEs trying to actually use the new rules.

Do this week: If US tariffs have you eyeing new markets, check whether your products or employees can now move more freely into another province — and have your lawyer confirm your sector isn’t on an exclusion list before you commit.

Rest of Canada

4. Ottawa strikes back: retaliatory tariffs on $27.6B of US goods start September 8

Starting September 8, 2026, Canada is imposing its own retaliatory tariffs — 15%, 25%, and 50% depending on the category — on roughly 700 US products worth $27.6 billion: steel and aluminum, furniture and clothing, dairy and seafood, appliances, wood and paper products, plastics, and agricultural and industrial equipment, among others. Alongside it, Ottawa is rolling out $7.5 billion in new and enhanced support for affected businesses and workers — on top of nearly $25 billion already committed since the trade fight began — including SME funding, a $2 billion diversification fund, and expanded EI flexibility.

Why it matters: If you import any of these categories from the US, expect cost increases starting September 8 — review your supply contracts and pricing now. If your business qualifies for the federal relief funding, get in the queue early — this kind of envelope tends to run out fast.

International

5. CUSMA will never be “settled” again — here’s why

On July 1, 2026, the CUSMA Free Trade Commission held the mandatory joint review triggered by the agreement’s sixth anniversary. The outcome: the US did NOT confirm the agreement’s built-in 16-year extension, even though Canada and Mexico were both in favour of extending it as-is. That US refusal doesn’t end CUSMA, though — the agreement stays fully in force through 2036, with no disruption to current tariff preferences, rules of origin, or dispute-resolution mechanisms. What does change: ANNUAL joint reviews are now required through 2036 (the parties can still agree to extend the deal at any point, by simple written confirmation from heads of government, without a full renegotiation). In short, trade uncertainty isn’t a one-time event anymore — it’s a recurring yearly checkpoint for the next decade.

Why it matters: Nothing changes in the short term for your day-to-day US or Mexico trade. But your longer-term planning — supply contracts, cross-border workforce mobility, work permits — now has to account for an annual review cycle instead of a deal that’s settled for a decade.

Business for sale? (Or shopping for one?)

The best deals are prepared months in advance — and a clean corporate file is worth its weight in gold at the negotiating table, especially in a market this unsettled. Write to us in full confidence at contact@banksavocats.com to start the conversation.

About the author ade Banks is a lawyer and the founder of Banks Avocats. She advises entrepreneurs and executives in Quebec and across Canada on business law: incorporations, buying and selling businesses, commercial contracts, and compliance (Law 25, the Charter of the French Language). Her approach: plain language, practical advice, and real attention to your business goals. She and her team write this newsletter.

This newsletter is general information only and is not legal advice. Every situation is unique — speak with a lawyer before acting. © 2026 Banks Avocats — banksavocats.com