New 50 Percent Tariff on Canadian Waste Imports
Waste facility operators face a major cost hike as new federal tariffs on Canadian refuse take effect October 30.
Updated on Oct. 27, 2026 in International Trade
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President Donald Trump has imposed a 50 percent tariff on municipal and clinical waste imports from Canada, effective October 30. The policy shift impacts cross-border waste logistics and disposal operations, particularly for facilities in Michigan that currently receive millions of tonnes of Canadian refuse.
Why it matters
The new tariff significantly increases the cost of waste management operations that rely on low-cost international disposal markets. This move targets the economic incentive for cross-border disposal driven by current capacity shortages in Ontario.
Federal trade policy now applies a 50 percent tariff to municipal and clinical waste imports from Canada, which accounted for 3.2 million tonnes of waste in Michigan during fiscal year 2025. This compares to the 3.44 million tonnes Ontario exported to the U.S. in 2024.
The players
Donald Trump
The President of the United States who authorized the new tariff schedule under Section 338.
Gretchen Whitmer
The Governor of Michigan who proposed increasing the solid waste surcharge to $5 per ton in the 2026 fiscal budget.
The details
The tariff adjustment under Section 338 follows a broader trade amendment that added 100 new items to the tariff list while removing duties from 22 goods. Michigan landfills have historically accepted Canadian waste due to low tipping fees of 36 cents per tonne, compared to higher costs in domestic markets. With Ontario projected to exhaust local landfill capacity by 2034 without exports, operators must now account for significant cost inflation or identify alternative disposal routes.
Timeline
October 24, 2026: The White House issued an amendment to existing trade policy.
October 30, 2026: New tariffs on municipal and clinical waste imports take effect.
Market Landscape
This policy change utilizes Section 338 of the U.S. trade code to pivot from a long-standing practice of accepting Canadian municipal waste. It follows a historical trend of utilizing low-cost cross-border tipping fees to manage capacity, now directly challenged by federal trade barriers.
Waste management operators and logistics firms should immediately review procurement contracts for cross-border disposal to adjust for the 50 percent cost increase. Owners must also track the progress of Michigan's proposed $5 per ton surcharge, which could further compound operational costs.
The takeaway
The move shifts the economic burden of waste disposal from Canadian exporters to U.S.-based operators and their customers. Management should prepare for a transition period by auditing landfill reliance on imported volumes and modeling the impact of potential future state-level surcharges.
Further reading
For additional analysis on changing import costs, visit International Trade.
Source note: This article includes information reported by National Post.
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Should the U.S. impose tariffs on imported municipal waste to address domestic landfill capacity concerns?
