The Canada–US trade dispute stepped up this week. On 29 September 2026, a US ban on nearly $1 billion of Canadian imports took effect, covering products including alcoholic beverages, dairy and motorcycles (CBS News). It follows Canadian retaliatory measures, in effect earlier this month, targeting about $20 billion of US products (ABC News).
This builds on the breakdown of trade talks that the Bank of Canada flagged in its 2 September rate decision (Volume 1, Blog 9).
What it means for private real estate lending
- Borrowers in affected sectors. Wineries, distilleries, dairy processors and their suppliers, and the industrial landlords who house them, face revenue risk. Review exposure in your book.
- Construction budgets. Counter-tariffs on US goods can raise material costs for Canadian projects, just as US tariffs raise them in the US. Keep contingencies generous (Article 11).
- Currency. Trade shocks move CAD/USD. Revisit hedging on currency-mismatched loans.
- Investor sentiment. Uncertainty can slow cross-border capital decisions. Relationships and clear legal structures matter more than ever.
What it does not change
The legal rules for cross-border loans, including usury, licensing, tax treaties and enforcement, are unchanged. The Canada–US tax treaty remains in force, and interest withholding rules are unaffected (Volume 1, Article 6).
This content is general information for industry professionals and is not legal, tax or financial advice. Laws change and apply differently to each transaction; obtain advice from qualified counsel in each relevant jurisdiction. Legal counsel to the Cross-Border Private Lenders Association: Jasmine Daya & Co. Questions: info@cbpla.com