On July 20, 2026, President Trump signed three proclamations imposing an additional 50% tariff on a wide range of Canadian imports under Section 338 of the Tariff Act of 1930. The tariffs will take effect on August 19, 2026, for goods entered for consumption or withdrawn from warehouse for consumption on or after that date.
Products Subject to the Tariffs
For products covered by the proclamations, the additional Section 338 duties apply regardless of whether the goods qualify for duty-free treatment under the USMCA, according to the White House fact sheet. The affected HTSUS subheadings are identified in the annexes accompanying each proclamation. Careful review is necessary as goods range from wine to hockey sticks to cement.
The following are excluded from the new tariffs:
- Energy products
- Potash
- Goods already subject to Section 232 tariffs
- Goods (other than unmanned aircraft) subject to the WTO Agreement on Trade in Civil Aircraft
- Certain other goods, including fish and critical minerals
Non-domestic-status goods admitted to a US foreign trade zone on or after the effective date must be admitted under “privileged foreign status” and will be subject to the applicable duty rate upon entry for consumption.
Grounds for the Determination
Each proclamation makes a separate discrimination finding under Section 338, covering alcoholic beverages, dairy, and motor vehicles. The proclamation calls out tariffs, quotas and/or discriminatory practices on motor vehicles, alcoholic beverages, and dairy. Section 338 of the Tariff Act of 1930 empowers the President to impose tariffs when a country discriminates against the US.
Trade Implications
As these additional Section 338 tariffs take effect, Mohawk Global Trade Advisors can help businesses understand whether their Canadian-origin products are affected and what the new duties mean for their supply chains. Our team can review product classifications, evaluate duty exposure, estimate landed-cost impacts, and identify opportunities to help mitigate increased costs while maintaining compliance. Reach out today.