Canada: Export Controls & Trade & Investment Sanctions

The Government of Canada has introduced new rules governing the second allocation period for electric vehicle imports from China, increasing the available quota to 33,397 vehicles while maintaining strict permit requirements and a first-come, first-served allocation system. Global Affairs Canada signals potential intervention measures to ensure equitable access, particularly for original equipment manufacturers and new market entrants navigating this highly regulated import regime.

The U.S. has implemented sweeping tariffs on Canadian goods, marking the first time USMCA-compliant products face such measures in the ongoing trade dispute. Canada has responded with dollar-for-dollar counter-tariffs on $27.6 billion worth of U.S. imports, while additional auto industry tariffs loom on the horizon. How will these escalating trade actions reshape cross-border commerce and what strategic adjustments should businesses consider?

Following the Trump administration's imposition of 50% tariffs on Canadian exports worth C$27.6 billion, Prime Minister Carney has announced comprehensive countermeasures targeting American goods. The Canadian response includes dollar-for-dollar retaliatory tariffs ranging from 15% to 50% on US products, alongside C$7.5 billion in support programs for affected workers and businesses. What relief measures and remission frameworks are available to Canadian importers navigating this escalating trade dispute?

A recent Alberta court decision provides critical guidance on Canadian sanctions compliance, examining how businesses must assess whether counterparties are controlled by sanctioned entities through voting power, board composition, and governance structures. The case demonstrates that sanctions screening extends far beyond checking names on official lists, requiring deeper analysis of corporate ownership chains and practical control mechanisms.

When Canadian companies operate across borders, complying with one country's sanctions laws can expose them to prosecution in another. This article examines the unique compliance dilemma that arises when Canadian obligations under the Foreign Extraterritorial Measures Act conflict with U.S. sanctions against Cuba, creating a cross-border compliance trap for businesses with American ties.

The US Department of Commerce’s recent imposition in mid-June of an export licensing requirement (since lifted at end of June for select US entities) on exports, reexports, and in-country transfers of Anthropic’s Claude Mythos 5 Model and Claude Fable 5 Model to all destinations worldwide and to “all foreign persons” is a stark reminder of how export controls may go beyond the control of physical goods and also apply to intangible goods such as software, AI models, or technology transfers in the cloud. More recent news about AI models going rogue and a proposed bipartisan “AI Kill Switch” bill introduced by two US congressmen foreshadow additional controls in the near future.

The Ontario Superior Court of Justice delivered its first decision applying Canada's sanctions regime under the Russia Regulations, dismissing an oppression claim against an Ontario corporation that suspended director appointment rights of a shareholder owned by senior officials of a designated Russian entity. The case provides crucial guidance on interpreting the "deemed control" test for entities not directly owned by sanctioned persons, establishing important precedent for Canadian businesses navigating

The United States has imposed 50% tariffs on hundreds of Canadian exports effective August 19, 2026, targeting goods across multiple sectors including machinery, wood products, chemicals, textiles, food and beverages. Canadian exporters should verify whether their products fall under the affected HTS codes, as these tariffs apply even to CUSMA-compliant goods.

Canadian sanctions laws now impose strict compliance obligations on real estate professionals, requiring them to screen parties, verify beneficial ownership, and identify hidden control structures that could expose transactions to regulatory penalties. This article examines how sanctions restrictions apply to property dealings, what red flags signal potential violations, and what practical steps professionals must take to manage risk throughout the transaction lifecycle.