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.
