Canada Section 338 Changes Expand
To Our Valued Partners,
We want to share an important update to the Canada Section 338 actions we have been monitoring.
On September 8, the White House announced new changes that revise the products covered by the existing 50% Section 338 tariffs and prohibit certain Canadian products from entering the United States.
There are two important dates to know:
September 15, 2026
Changes to the products covered by the 50% Section 338 tariffs take effect for goods entered for consumption or withdrawn from warehouse for consumption on or after this date.
September 29, 2026
Certain Canadian products listed in the new import-ban annexes will be prohibited from importation into the United States.
ALCOHOLIC BEVERAGES:
Certain Canadian alcoholic beverages will be prohibited from importation beginning September 29.
The separate alcohol tariff action also changes the products covered by the 50% Section 338 duty beginning September 15, with some products being added and others removed.
DAIRY:
Certain Canadian dairy and related products will be prohibited from importation beginning September 29.
The official dairy annex identifies the specific HTS classifications covered by the new import ban. Importers should review the list carefully rather than assuming all Canadian dairy products are included.
MOTOR VEHICLES:
Certain Canadian motor-vehicle products will be prohibited from importation beginning September 29.
The separate motor-vehicle tariff action also changes the products covered by the 50% Section 338 duty beginning September 15, with products being added to and removed from the tariff list.
OTHER PRODUCT CHANGES:
The September 15 tariff changes are not limited only to alcohol, dairy and motor vehicles. The new annexes add and remove a number of other HTS classifications.
Because the product lists have changed, importers should review the new September annexes and not rely only on the earlier August Section 338 list when reviewing Canadian shipments.
The Section 338 tariffs continue to apply to covered goods even when the goods qualify as originating under USMCA. They also apply in addition to any applicable Section 232 duties.
SHIPMENTS ALREADY MOVING:
The new import-ban proclamations include transition rules for affected goods imported before September 29 but not yet entered for consumption or withdrawn from warehouse for consumption.
Those goods remain subject to the applicable 50% Section 338 duty rather than the new import ban.
RESOURCES
USTR – September 8 Section 338 Update
White House Fact Sheet
ALCOHOL:
Alcohol – Import Ban Proclamation
Alcohol – Import Ban Product List
Alcohol – Tariff Scope Proclamation
Alcohol – Tariff Scope Product List
DAIRY:
Dairy – Import Ban Proclamation
Dairy – Import Ban Product List
MOTOR VEHICLES:
Motor Vehicles – Import Ban Proclamation
Motor Vehicles – Import Ban Product List
Motor Vehicles – Tariff Scope Proclamation
Motor Vehicles – Tariff Scope Product List
Our team will continue monitoring CBP and other official guidance as the September 15 and September 29 effective dates approach.
If you have a Canadian shipment moving now or planned and have questions about how these changes may affect your freight, please contact our team at 833-782-7628. We are happy to help you review the current requirements and the applicable product lists.
