Tax Insight

US imposes new Section 338 tariffs on certain Canadian imports

Insight
3 minute read
July 22, 2026

What happened?

President Trump on July 20 issued three proclamations under Section 338 of the Tariff Act of 1930, imposing an additional 50% ad valorem duty on certain Canadian-origin goods in response to what the administration describes as discriminatory Canadian measures affecting US motor vehicles, alcoholic beverages, and dairy products. The additional duties are scheduled to take effect on August 19, 2026, and generally apply to covered Canadian-origin goods regardless of whether they qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA), subject to specified exclusions.

Why is it relevant?

These proclamations appear to mark the first use of Section 338 and add further complexity to the US tariff landscape for imports from Canada. According to the White House fact sheet, these measures apply to specified Canadian-origin goods, including wine, hockey sticks, and cement. The new duties do not apply to products already subject to Section 232 duties, energy, potash, and certain other goods like fish and critical minerals.

Actions to consider

Companies importing goods from Canada should review whether their products are subject to the new Section 338 tariffs, assess how the new duties interact with existing Section 232 measures and other trade programs, and evaluate the resulting financial and supply chain impact. Companies also should monitor forthcoming US Customs and Border Protection (CBP) guidance and Harmonized Tariff Schedule of the United States (HTSUS) updates addressing the scope of covered products and entry procedures.

For additional details, read the full Tax Insight linked below.