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U.S. TRADE ALERT: 50% Tariffs On Certain Products of Canada – Section 338

Three Presidential Proclamations have been issued imposing 50% tariffs on a variety of products of Canada pursuant to Section 338 of the Tariff Act of 1930. These new tariffs are effective August 19, 2026 at 12:01 am EST. Links to each Proclamation are provided below:

Motor Vehicle Offset Proclamation

Alcohol Offset Proclamation

Dairy Offset Proclamation

Applicability of the tariffs is based solely upon HTS classification number and USMCA qualification is irrelevant. Accordingly, there is no exemption for products of Canada qualifying for preferential treatment under the USMCA. If your product is classified under an HTS number on one of the below lists and is country of origin Canada, then the product is subject to the tariffs. The descriptions provided next to the HTS numbers in the Annexes are for informational purposes only.

The only exemptions currently available pertain to products subject to Section 232 tariffs and articles of civil aircraft or aircraft parts that meet the criteria of General Note 6 of the HTSUS.

To determine if the products you import into the United States are subject to the Section 338 tariffs, it is imperative you review each list thoroughly in conjunction with your internal HTS classification records. Note that just because the proclamations reference motor vehicles, alcohol, and dairy does not mean those are necessarily the products covered. The lists consist of a wide range of HTS classifications.

All Three Annexes Combined

Annex I – Motor Vehicle Proclamation

Annex I – Alcohol Proclamation

Annex I – Dairy Proclamation

 

 

 

 

 

 

 

 

 

Sincerely,

 

BCB International, Inc.

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