August 19, 2026

Reminder: 50% U.S. Tariffs on Certain Canadian Goods Take Effect 9:01 p.m. Pacific Standard/Daylight Time

Sparing a last minute deal, a new 50% tariff on certain products of Canada is set to take effect tonight. Talks between Ottawa and Washington are ongoing, but as of this bulletin no delay, suspension, or carve-out has been announced.

Scope of the New 338 Tariffs

Please review the annexes below to determine if the tariffs will impact you:

  • Dairy proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy”: Annex I | Annex II
  • Alcoholic beverages proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages”: Annex I | Annex II
  • Motor vehicles proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles”: Annex I | Annex II

Key points

The entry date matters. The 50% duty applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on August 19 — not the date of shipment, order, or border crossing. No in-transit exemption has been announced.

CUSMA/USMCA does not exempt covered goods. The 50% duty applies regardless of CUSMA eligibility. Goods that currently enter duty-free under a valid CUSMA claim will still owe the additional 50%. A valid CUSMA (or TPL for some apparel products) is still required to avoid regular duty.

The duty stacks. The new rate is charged in addition to the duty otherwise owed under the regular HTS subheading, along with any other applicable duties, taxes, and fees.

Narrow exclusions. Energy products, potash, fish, and critical minerals are excluded, as are articles already subject to Section 232 duties (such as steel, aluminum, copper, automobiles and parts, and lumber), which continue to pay their existing Section 232 rates instead.

Please contact Carson for assistance