Tariff Notices · Tariffs · confirmed

Canada Section 338 action adds 50% tariffs to three covered-product lists on August 19

Updated · Impact score 74/100 · Confidence 55%

Three presidential proclamations impose an additional 50% duty on specified products of Canada under new HTSUS headings 9903.03.12, 9903.03.13, and 9903.03.14 for entries on or after 12:01 a.m. eastern time on August 19, 2026.

Why it matters

The lists extend well beyond alcohol, dairy, and vehicles and apply to covered Canadian goods even when they qualify as originating under USMCA. The duties generally stack with other charges, subject to the proclamations' Section 232, civil-aircraft, Chapter 98, personal-baggage, and other specified exceptions.

What to check next

Map every Canada-origin SKU to the three Annex I product lists and new Chapter 99 headings, review the exceptions in U.S. note 51 with your broker, update landed-cost and foreign-trade-zone instructions before August 19, and watch for CBP implementation guidance or technical corrections.

Deadline

Canada Section 338 tariffs take effect:

Affected entities

  • Canada -> US
  • HTSUS 9903.03.12 — Section 338 alcohol-action product list
  • HTSUS 9903.03.13 — Section 338 dairy-action product list
  • HTSUS 9903.03.14 — Section 338 motor-vehicle-action product list
  • White House
  • USTR
  • CBP
  • Section 338 tariffs
  • Foreign-trade zones

Primary sources