New US import restrictions and tariff changes affecting certain Canadian goods take effect in September, creating additional considerations for importers across several product categories. Importers should review how these changes may affect their products and supply chains. CBP has issued guidance outlining the new requirements.
On September 8, 2026, the Administration issued proclamations modifying the scope of the existing 50% Section 338 additional duty on certain Canadian goods and establishing new import prohibitions for specified products.
The changes primarily affect certain goods associated with the motor vehicle, dairy and alcoholic beverage sectors.
Key Changes for Importers
Importers should not assume that USMCA eligibility provides an exemption from Section 338 duties.
Covered Canadian goods remain subject to the applicable Section 338 tariff even when they qualify as originating under the USMCA. Importers should therefore evaluate Section 338 exposure separately from any USMCA preferential treatment.
Section 338 Duties May Apply in Addition to Section 232
For products that are also subject to Section 232 tariffs, the Section 338 duty applies in addition to the applicable Section 232 duty.
This potential duty stacking can significantly increase the total duty liability for affected imports. Importers should consider both tariffs when evaluating landed costs and overall duty exposure.
Section 338 Scope Changes Take Effect September 15
Effective September 15, 2026, the scope of products subject to the 50% Section 338 additional duty will change in regard to motor vehicles and alcoholic beverages.
Certain products will be added to the tariff scope, while others will be removed. The applicable Harmonized Tariff Schedule of the United States (HTSUS) classifications will be updated accordingly.
Among the changes, certain products such as rock salt and cement will be removed, while all-terrain vehicles (ATVs) and additional dairy products will be added to the scope.
New Import Prohibitions Begin September 29
Beginning September 29, 2026, at 12:01 a.m. ET, certain Canadian products identified in the applicable proclamations will be prohibited from entering the United States.
The restrictions cover specified products associated with:
- Motor vehicles
- Dairy products
- Alcoholic beverages
The specific products subject to the prohibitions are identified by HTSUS classification in the proclamations’ annexes. Importers should review these classifications carefully to determine whether upcoming shipments may be affected.
These changes may have a direct impact on both import admissibility and landed costs. Importers should review the applicable product classifications and requirements before shipping affected Canadian goods.
Mohawk Global Trade Advisors can help importers evaluate tariff exposure, classification and compliance considerations as these requirements continue to evolve. Please contact your Mohawk Global representative with questions about how these changes may affect your imports.