Section 338 Tariffs on Canada

Please note that this is an evolving situation and the information below may be subject to change or clarification at any time.

The U.S. has imposed a 50 percent tariff on covered goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Aug. 22, with no apparent termination date.

On Sept. 8, President Trump issued proclamations excluding certain motor vehicles, alcoholic beverages, and dairy products from importation to the U.S. Additionally, the administration modified products (see here and here) affected by the 50 percenr tariff, to take effect at 12:01 am Sept. 15.

Canada's counter-tariffs were effective September 8, 2026. This includes 15, 25, or 50 percent tariffs on hundreds of products drawn from those targeted by U.S. Section 338 and Section 232 tariffs (click here for full list). Canada's tariffs take effect September 8, 2026.

For questions about your specific situation, please contact us at tariffs@strtrade.com.

Affected Products

Affected products are set forth in the annexes of the original proclamations, which are available here, here, and here, and the Sept. 8 proclamations, available here and here. These products include wine and other alcoholic beverages, cosmetics, ice skates, hockey sticks, fishing rods, cement, paper and wood items, honey, textiles and apparel, machinery, jewelry, furniture, and other items.

Unlike previous additional tariffs, the Section 338 tariff will apply to all covered goods regardless of whether they are originating under the U.S.-Mexico-Canada Agreement. It will also stack on top of any other applicable duties.

Effective Dates

The new tariff will be effective for covered goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Aug. 22, with no apparent termination date. This is a three day delay from the original effective date of Aug. 19. The tariff on the additional products will be effective at 12:01 am Sept. 15, 2026.

All proclamations provide that the tariff could be further modified in the future but give no indication as to when or under what conditions that may occur.

Excluded Products

The tariff will not apply to energy, potash, products subject to Section 232 tariffs, articles subject to the World Trade Organization Agreement on Trade in Civil Aircraft (except drones), certain other goods, such as fish or critical minerals, and products excluded in the Sept. 8 proclamations.

Section 338 Statute

These were issued under Section 338 of the Tariff Act of 1930, the first time that statute has been used for that purpose. According to the proclamations, Section 338 empowers the president to impose tariffs on imports of a foreign country to offset the burden or disadvantage from its discrimination against or unequal imposition on U.S. commerce.