August 14, 2026

REMINDER: New 50% U.S. Tariffs on Canadian Goods Take Effect Wednesday, August 19

This is a reminder that the new Section 338 tariffs take effect at 12:01 a.m. ET on Wednesday, August 19, 2026

On July 20, President Trump issued three proclamations invoking Section 338 of the Tariff Act of 1930, each imposing an additional ad valorem duty of 50% on certain products of Canada. While the three proclamations are framed as responses to Canadian measures on dairy, alcoholic beverages, and motor vehicles, the actual product coverage is much broader — spanning wood products, plastics, paper and packaging, furniture, apparel, electronics, sporting goods, cosmetics, and more. The annexes to each proclamation list the specific HTS numbers subject to the new 50% duty:

  • 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 to keep in mind before August 19

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 The 50% duty applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on August 19 — not the date of shipment, order, or border crossing.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 only. 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