On July 20, 2026, the White House issued three proclamations imposing an additional 50% tariff on certain Canadian products under Section 338 of the Tariff Act of 1930. Section 338 authorizes the president to impose “new or additional duties” on countries that have discriminated against U.S. commerce. Section 338 tariffs are not time limited as other tariffs have been. A temporary 3-day suspension was issued earlier this week postponing implementation until August 22, at 12:01 a.m. Eastern Time.
The tariffs became effective on August 22, 2026, at 12:01 a.m. Eastern Time and will apply to goods entered for consumption, or withdrawn from warehouse for consumption.
The additional 50% duty applies only to specified Canadian products listed in the Annex of the proclamation. These duties are in addition to existing duties, taxes, and fees, unless a specific exemption applies. Section 338 duties apply to United States-Mexico-Canada Agreement (USMCA)-qualifying goods since they are not excluded.
Goods entered into a Foreign Trade Zone (FTZ) must be admitted under Privileged Foreign Status. In addition, duty drawback and Chapter 98 returned goods provisions may be available, as applicable, to help reduce duty exposure.
The Alcoholic Beverages Annex primarily covers beer, wine, and spirits. It also includes certain wood and paper products.
The Dairy Annex primarily covers dairy products and caseins but also includes sugar-containing products and nonalcoholic beverages.
U.S. Motor Vehicles Proclamation (HTSUS 9903.03.14)The Motor Vehicle Annex is the most extensive of the three and covers a broad range of products that are not directly related to the automotive sector. These products include:
Please reach out to your C.H. Robinson representative with any questions.
Resources
CSMS # 69606660 - GUIDANCE: Section 338 Additional Duties on Certain Goods of Canada
Section 338 Canada HTS LIST Final.pdf
Fact Sheet: President Donald J. Trump Imposes Additional Tariffs on Canada – The White House