Section 338 Canada Tariffs Delayed to August 22

Effective Date Delayed to August 22

The additional 50% Section 338 tariffs, originally scheduled to take effect today, August 19, have been delayed until August 22, 2026.

The new tariffs are now scheduled to apply to covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on August 22.

The three-day delay comes as trade discussions between the United States and Canada continue.

What Importers Should Know

For now, companies importing affected Canadian products should continue planning as though the 50% additional tariff will take effect on August 22.

A few important reminders:

  • The tariffs apply to certain products identified in the proclamations involving motor vehicles, alcoholic beverages, and dairy
  • Covered products may be subject to the additional tariff even when they qualify for preferential treatment under USMCA
  • The Section 338 tariff will stack with other applicable duties
  • Certain products are excluded, including specified energy products, potash, products subject to Section 232 duties, and other qualifying goods

This Situation Is Still Evolving

With negotiations ongoing, additional changes or clarification could be announced before August 22.

Richard Murray & Co. is monitoring developments closely and will keep you informed of any changes that could impact your imports.

If you have questions about an upcoming Canadian shipment or whether your products may be affected, please reach out to our Customs Brokerage team.

Read the Latest Section 338 Update

Trade & Compliance Update: IOR Validation, CTPAT & Canada Tariffs

It’s been a busy summer in the world of customs and trade compliance, and we wanted to take a moment to highlight three developments that should be on importers’ radar.

From increased scrutiny of Importer of Record information to new enforcement expectations and tariffs affecting certain Canadian goods, here’s what you need to know.

Is Your Importer of Record Information Up to Date?

CBP is increasing its focus on the accuracy and completeness of Importer of Record (IOR) information.

Beginning September 18, CBP plans to begin voiding IOR numbers when required information on CBP Form 5106 is determined to be incomplete or inaccurate. A voided IOR number cannot be used to enter merchandise into the United States.

What Importers Should Do

Now is a good time to review the information associated with your IOR number, including:

  • Company name and identification information
  • Mailing and physical addresses
  • Phone number and email address
  • Other information submitted to CBP through Form 5106

Importers should make sure information provided to CBP is accurate, complete, and directly associated with the Importer of Record.

Read More: CBP to Begin Voiding IOR Numbers for Incomplete or Inaccurate Information

CTPAT Takes on Greater Importance

As CBP moves toward a more enforcement-focused environment, participation in the Customs Trade Partnership Against Terrorism (CTPAT) may become increasingly valuable.

New enforcement initiatives are expected to place greater emphasis on importer vetting and due diligence, particularly when customs brokers represent foreign Importers of Record.

Among the information brokers may be expected to verify are an importer’s identity, ownership structure, business affiliations, U.S. assets, compliance history, import activity, and ability to meet its duty and fee obligations.

For foreign IORs in particular, CTPAT participation could become an important consideration when determining how entries are filed and which customs brokers can represent them.

Read More: CTPAT Validation and the Changing Enforcement Environment

Effective Today: Section 338 Tariffs on Certain Canadian Imports

Importers should also be aware of the 50% Section 338 tariffs scheduled to take effect today, August 19, on certain products imported from Canada.

The measures are expected to affect approximately 5% of U.S. imports from Canada, and importantly, USMCA eligibility does not necessarily protect an affected product from these Section 338 duties.

Negotiations between the United States and Canada have continued, meaning the situation remains fluid. Unless official guidance changes the implementation, however, importers should plan for the tariffs to apply.

If your company imports affected Canadian products, we encourage you to review current and upcoming shipments with your customs team.

Read More: Section 338 Tariffs on Imports from Canada

We’re Here to Help

Customs enforcement and trade policy continue to evolve quickly, and small changes can have significant implications for importers.

Richard Murray & Co. will continue monitoring these developments and sharing information as new guidance becomes available.

If you have questions about your IOR information, CTPAT, Canadian imports, or other customs compliance matters, please reach out to our team. We’re always happy to help you understand how these changes may affect your business.

Contact the Richard Murray & Co. team at customs@richard-murray.com.

CBP Issues Guidance on Section 301 Forced Labor Duties

U.S. Customs and Border Protection (CBP) has issued implementation guidance for the Section 301 Forced Labor duties announced by the Office of the United States Trade Representative (USTR).

These additional duties apply to imports from 60 specified economies and become effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on July 24, 2026.

What You Need to Know

CBP has released filing instructions outlining how these new Section 301 duties will be administered, including:

  • New Chapter 99 tariff classifications for affected imports
  • Country-specific duty rates of 10% or 12.5%, depending on the country of origin
  • General and country-specific exemptions
  • Entry filing requirements and HTS reporting sequence
  • Foreign Trade Zone guidance for qualifying merchandise

Transit Exception

CBP also provides a limited transit exception for qualifying shipments.

The additional duties generally will not apply to articles that:

  • Were loaded onto the final vessel or mode of transportation before 12:01 a.m. ET on July 24, 2026, and
  • Are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. ET on July 28, 2026.

What Importers Should Do

If your company imports products from any of the affected economies, now is a good time to:

  • Review upcoming shipments and entry dates
  • Confirm the country of origin and applicable tariff classification
  • Determine whether any available exemptions may apply
  • Evaluate the potential impact on landed costs and customs entries

Our Customs Brokerage team is actively monitoring these changes and is available to help determine how the new guidance may affect your shipments.

Learn More

For complete implementation guidance, including the list of affected economies, applicable Chapter 99 classifications, exemptions, and filing instructions, please review the official resources below:

We’re Here to Help

As additional guidance becomes available from CBP and USTR, Richard Murray & Co. will continue to keep our customers informed with timely trade updates.

If you have questions regarding your imports or how these new requirements may affect your business, please contact the Richard Murray & Co. team at customs@richard-murray.com.

New Section 338 Tariffs Announced on Certain Canadian Imports

      We wanted to make you aware of a significant trade development that may affect companies importing products from Canada.

      On July 20, 2026, three Presidential Proclamations were issued invoking Section 338 of the Tariff Act of 1930 to impose additional duties on certain Canadian products.

      This marks the first known use of Section 338 to impose tariffs, making it an important development for importers to monitor.

      What Is Section 338?

      Section 338 of the Tariff Act of 1930 provides authority to impose additional duties on products from countries determined to be engaging in discriminatory trade practices that negatively impact U.S. commerce.

      Unlike other trade measures, Section 338 does not include a specified expiration period, meaning these duties could remain in effect unless modified or revoked through future government action.

      What’s Changing?

      The proclamations establish an additional 50% ad valorem duty on certain Canadian products in response to three separate trade issues identified by the Administration:

      • Canadian tariff-rate quotas affecting U.S. dairy products
      • Restrictions on the importation and sale of certain U.S. alcoholic beverages
      • Canada’s tariff treatment of certain U.S. motor vehicles that do not qualify for duty-free treatment under the United States-Mexico-Canada Agreement (USMCA)

      The specific products subject to these duties are identified within the annexes accompanying each proclamation.

      Effective Date

      The additional duties are scheduled to become effective:

      August 19, 2026

      12:01 a.m. Eastern Time

      Importers of Canadian goods should review upcoming shipments to determine whether any products may fall within the affected tariff classifications.

      What Importers Should Do

      If your business imports products from Canada, now is a good time to:

      • Review product classifications and country of origin
      • Determine whether any current or future shipments may be affected
      • Evaluate potential cost impacts on imports arriving on or after the effective date

      Our team is available to help review classifications and discuss how these changes may affect your supply chain.

      Learn More

      For those who would like to review the official product lists and tariff classifications, we’ve included links to the annexes below.

      Dairy Products

      Alcoholic Beverages

      Motor Vehicles

      We’re Here to Help

      As additional guidance becomes available from CBP and other federal agencies, we’ll continue to share timely updates to help our customers navigate the evolving trade landscape.

      If you have questions about these new Section 338 duties or how they may impact your imports, please contact the Richard Murray & Co. team at customs@richard-murray.com.

      New Tariffs on Brazilian Imports Effective July 22

          U.S. Customs and Border Protection (CBP) has announced new guidance regarding additional tariffs on imports from Brazil, with the new measures becoming effective July 22, 2026.

          Important Effective Date

          The additional tariffs will apply to all entries entered for consumption, or withdrawn from warehouse for consumption, on or after July 22, 2026.

          Temporary Transit Exception

          A temporary exception is available for qualifying shipments that:

          • Were loaded onto their final mode of transportation before July 22, 2026, and
          • Are entered for consumption before 11:59 p.m. EDT on July 29, 2026.

          For purposes of this exception, “on the water” means the goods must already be aboard their final mode of transportation prior to the July 22 effective date.

            What You Need to Know

            CBP has released implementation guidance outlining new tariff requirements on certain imports from Brazil. These changes may impact duty calculations, entry filing requirements, and overall landed costs for affected importers.

            If your company imports products from Brazil, now is a good time to review any shipments currently in transit, as well as those scheduled to depart in the coming days, to determine whether they may be impacted by the July 22 effective date.

            We’re Monitoring the Details

            The Richard Murray & Co. team is actively reviewing the guidance and monitoring any additional instructions released by CBP.

            As more information becomes available, we’ll continue providing timely updates and practical guidance to help our customers remain informed and prepared.

            If you have questions about a current shipment or how these tariff changes may impact your imports, please reach out to your Richard Murray & Co. representative.

            Learn More

            For the complete CBP announcement and implementation details, please review the official guidance below:

            🔗 Brazil 301 Final Action FRN 7-15-2026

            Thank you for trusting Richard Murray & Co. as your customs brokerage and trade compliance partner.

            CBP Update: IEEPA Duty Refund Process (CAPE)

                We want to share an important update from U.S. Customs and Border Protection (CBP) regarding a new process that may create refund opportunities for importers who have paid duties under the International Emergency Economic Powers Act (IEEPA).

                CBP is introducing a new system within the ACE Portal called CAPE (Consolidated Administration and Processing of Entries), which is designed to streamline how these duty refunds are requested and processed. This update follows recent court rulings directing CBP to remove IEEPA-related duties from certain entries and issue refunds where applicable.

                What you should know:

                • Centralized refund process: Eligible refunds will be grouped together and issued as consolidated payments rather than processed individually by entry
                • Electronic submission required: Refund requests must be submitted through the ACE Portal using a CAPE declaration
                • Automated duty review: CBP will remove applicable IEEPA tariffs and recalculate duties to determine refund amounts
                • Expected timing: Refunds are generally anticipated within 60–90 days after a claim is accepted, depending on CBP review
                • Electronic payment: Refunds will be issued via ACH, so ensuring your banking details in ACE are current is important

                Additional considerations:

                • The initial rollout applies to certain unliquidated entries and those within a limited timeframe after liquidation
                • Certain entry types or conditions (e.g., protests, drawback, or other restrictions) may impact eligibility
                • Importers or their authorized brokers must initiate the process through ACE

                We are currently reviewing how this process applies across our customer base and will be following up with additional information, including how we can assist with filings.

                In the meantime, if you believe you may have entries impacted by IEEPA duties, we recommend reviewing your records and confirming your ACE Portal access and ACH enrollment are up to date.

                Please reach out to our team with any questions—we’re here to help you navigate this process.

                URGENT UPDATE: Supreme Court Ruling on Tariffs

                We want to alert you to a significant development regarding U.S. tariffs.

                The U.S. Supreme Court has ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority. As a result, the sweeping reciprocal tariffs and certain tariffs imposed on Canada, China, and Mexico under that authority have been invalidated.

                    Please note:

                    • The decision does not affect all existing tariffs.
                    • Only tariffs implemented under the 1977 IEEPA statute are impacted.
                    • Further guidance from CBP is expected.

                    We are actively monitoring updates and will communicate additional information as it becomes available.

                    If you have immediate questions regarding current entries, duty payments, or potential impacts to your shipments, please contact our Customs Brokerage team.

                    We will continue to keep you informed.

                    Have questions?

                    Contact us at Customs@Richard-Murray.com or call 251-432-5549.

                    Key Tariff Updates and Import Compliance Insights

                    We wanted to share three key trade updates that have been the focus of recent discussions with many of our clients this week. Please review the following information regarding the new Section 232 tariffspotential China tariffs, and a Hot Topic tip on managing steel/aluminum tariffs.

                    New Section 232 Tariffs on Timber, Lumber, and Derivative Products

                    Effective October 14, 2025

                    The U.S. government has implemented new Section 232 import duties affecting timber, lumber, and related products. Below is a summary of the new duty rates:

                    Softwood Timber and Lumber

                    • 10% additional ad valorem rate of duty

                    Upholstered Wooden Furniture Products

                    • From all countries except the United Kingdom, Japan, and EU member states: 25%
                    • From the United Kingdom: 10%
                    • From Japan: 15%
                    • From the European Union: 15%

                    Completed Kitchen Cabinets, Vanities, and Parts

                    • From all countries except the United Kingdom, Japan, and EU member states: 25%
                    • From the United Kingdom: 10%
                    • From Japan: 15%
                    • From the European Union: 15%

                    Other Kitchen Cabinets/Vanities and Parts (Unfinished or Incomplete)

                    • 0% additional ad valorem duty

                    Exemptions:
                    Products already subject to Section 232 duties on automobiles and automobile parts remain exempt.
                    Products subject to IEEPA tariffs also carry certain exemptions, including:

                    • Canada and Mexico IEEPA exemptions
                    • Reciprocal IEEPA tariff exemptions
                    • 40% IEEPA tariff on Brazil
                    • IEEPA oil tariffs on India and Russia

                    Additionally, Chapter 44 subheadings have been removed from Annex II reciprocal exceptions, meaning they are now subject to reciprocal tariffs.

                    Potential 100% Tariff on Imports from China

                    The White House has recently threatened a 100% tariff on all imports from China — “over and above any existing tariffs.”

                    At this stage, no official action has been taken. We are currently in a wait-and-see period until an Executive Order or official Customs announcement is issued.

                    It remains unclear whether any new tariffs would apply based on the entry date or if exceptions will be made for vessels already on the water prior to implementation.

                    We will continue to monitor developments closely and provide timely updates as more information becomes available.

                    Hot Topic: How to Legally Avoid Paying 50% Tariffs on the Entire Invoice Value of Steel/Aluminum Products

                    Question:
                    How do we avoid paying Section 232 steel/aluminum tariffs on the entire invoice value if only a portion of the product is made of steel or aluminum?

                    Answer:
                    Request that your supplier provides a detailed, itemized commercial invoice that clearly breaks down all cost components, including:

                    • Labor costs
                    • Packaging
                    • Logistics/Transportation
                    • Steel or aluminum content (in value)
                    • Non-steel/aluminum content (in value)

                    Only the value of the steel or aluminum is subject to Section 232 steel/aluminum tariffs.

                    • Non-steel/aluminum content of the article is subject only to applicable reciprocal tariffs.
                    • Labor, packaging, and transportation costs are not subject to any tariffs.

                    Pro Tip:
                    The more documentation, the better. Ask suppliers for:

                    • Affidavits
                    • Bills of material
                    • Detailed commercial invoices
                    • Supporting photos

                    Note:
                    U.S. Customs and Border Protection (CBP) is entitled to request any supporting information needed to verify the breakdown between steel/aluminum and non-steel/aluminum components. Ensure all supporting documents are readily available at the time of entry.

                    How to Protect Your Business

                    • Always work with a licensed U.S. customs broker.
                    • Maintain accurate invoices and supporting documentation.
                    • Conduct regular compliance audits.
                    • Be cautious of overseas forwarders offering “duty savings” schemes-you will be held liable.

                    Richard Murray & Co. is committed to safeguarding your supply chain. For questions about compliance or to review your customs processes, contact us today.

                    Trust. Compliance. Protection.

                    Protect Your Business: The Risks of Using Origin Freight Forwarders for Customs Clearance

                    Richard Murray & Co., a trusted leader in global logistics and customs brokerage for over 100 years, is alerting importers of finished goods to the increasing dangers of entrusting customs and freight management to overseas freight forwarders. The Issue: Under-Invoicing and Customs Fraud Under-invoicing is a fraudulent practice where the declared value of imported goods is deliberately understated to reduce duties and taxes. While some overseas freight forwarders may offer to “save costs” by managing customs clearance at origin, these practices put U.S. importers at significant risk.

                    Common Schemes Include:

                    • Tampering with invoices to show lower values than what was paid.
                    • Double invoicing – one falsified invoice for customs, one real invoice for payment.
                    • Failing to declare assists (e.g., tooling, design, engineering support).
                    • Manipulating related-party transactions to undervalue goods.

                    The Consequences for Importers

                    If discovered, under-invoicing exposes importers-not just the overseas forwarder-to severe penalties:

                    • Financial penalties up to triple the underpaid duties.
                    • Civil and criminal charges, including potential prison time.
                    • Seizure of goods, leading to total financial loss.
                    • Loss of trusted trader status, increasing future customs scrutiny.
                    • Tax evasion liability, with back duties and interest owed.

                    How Authorities Detect Fraud

                    Customs and Border Protection (CBP) and trade enforcement agencies identify fraud through:

                    • Value-gap analysis comparing export vs. import data.
                    • Market-based pricing checks against fair market values.
                    • Whistleblower programs encouraging tips.
                    • Audits and document requests requiring importers to prove “reasonable care.”

                    How to Protect Your Business

                    • Always work with a licensed U.S. customs broker.
                    • Maintain accurate invoices and supporting documentation.
                    • Conduct regular compliance audits.
                    • Be cautious of overseas forwarders offering “duty savings” schemes-you will be held liable.

                    Richard Murray & Co. is committed to safeguarding your supply chain. For questions about compliance or to review your customs processes, contact us today.

                    Trust. Compliance. Protection.

                    New Trade Deals, Rising Tariffs, and Deadline Extensions: What August Means for Global Shippers

                    🚨White House Trade Announcements

                    President Trump Announces Major Trade Deal with Japan
                    On Tuesday evening, July 22, President Trump revealed a landmark trade agreement between the U.S. and Japan. Under this deal:
                    Japan will pay reciprocal tariffs of 15% on certain U.S. imports.
                    Japan has also agreed to invest $550 billion into the U.S. economy.
                    90% of profits from these investments will remain in the U.S.
                    Japan will open key markets to American exports, including cars, trucks, rice, and other agricultural products.

                    “This is a historic win for the American economy,” President Trump said during the announcement.
                    🌏 Global Trade Updates

                    🇮🇩 U.S.-Indonesia Agreement Finalized
                    Also on July 22, the Trump Administration confirmed a reciprocal trade deal with Indonesia. Key terms of the agreement include:
                    19% reciprocal tariff structure
                    Additional details can be found in the official fact sheet

                    🇪🇺 EU Negotiations Near Conclusion
                    The U.S. and EU are reportedly on the verge of finalizing a deal that would:
                    Lower tariffs to 15% on EU imports
                    Avert a retaliatory package by the EU, which has prepared measures targeting over $100 billion in U.S. goods if no agreement is reached

                    🇮🇳🇨🇦 India & Canada Talks Ongoing
                    Negotiations with India and Canada are still in progress. The U.S. is pushing for higher tariffs in both cases, with formal announcements expected in the coming weeks.

                    🇧🇷 Brazil: August 1 Deadline Looms
                    Tensions rise as Brazil approaches the critical August 1 deadline. Key issues include:
                    Outcome of the Bolsonaro trial
                    The trajectory of ongoing trade talks
                    The possibility of retaliatory tariffs, which could impact both countries’ economies
                    🇨🇳 China Deadline Extended to August 12

                    Negotiations between the U.S. and China remain fluid. As reported by MSN:
                    “Earlier in the month, the two countries reached a temporary agreement designed to give them time to negotiate a longer-term deal. Under that agreement, U.S. tariffs of 145% on Chinese goods will be reinstated on Aug. 12 if a deal isn’t reached. Chinese tariffs on U.S. goods are expected to rise back to 125% as well.”
                    A senior Trump official has suggested that this deadline could be pushed back further if negotiations continue to show progress.