New Section 338 Tariffs on Certain Canadian Imports - July 2026
The White House has issued three Presidential Proclamations under Section 338 of the Tariff Act of 1930, imposing an additional 50% tariff on specified imports from Canada. The new duties are scheduled to take effect 30 days after the proclamations were signed.
The three proclamations establish separate tariff actions affecting designated Canadian products related to motor vehicles, alcoholic beverages, and dairy products.
Key Takeaways
An additional 50% tariff will apply to designated Canadian imports covered by the three proclamations.
The tariffs are being imposed under Section 338 of the Tariff Act of 1930.
The additional duties apply to covered products regardless of whether they qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
The measures are scheduled to take effect 30 days after signing.
Scope of the Tariffs
The three proclamations establish separate tariff actions covering designated Canadian imports associated with:
Motor vehicles
Alcoholic beverages
Dairy products
Each proclamation includes its own list of covered tariff classifications. Importers should review the applicable annexes to determine whether their products are affected.
Exemptions
The additional Section 338 tariffs will not apply to:
Energy products
Potash
Products already subject to Section 232 tariffs
Certain fish products
Critical minerals
Other specifically excluded goods identified in the proclamations
What Importers Should Do
Importers sourcing goods from Canada should:
Review the annexes to determine whether imported products are covered by the new tariffs.
Evaluate shipments expected to arrive on or after the effective date.
Confirm HTS classifications and duty applicability with their customs broker.
Assess the potential impact on landed costs and sourcing strategies.
Monitor CBP for implementation guidance and additional entry instructions.
Juno Customs Solutions will continue monitoring implementation guidance and will provide additional updates as CBP releases further instructions. For questions regarding these changes, please contact us at brokerage@junocustoms.com