50% Section 338 Duties on Certain Canadian Goods Take Effect August 19

USMCA preference does not exempt these duties, and Section 338 carries no expiration date. Entry timing decides the rate.

Effective 12:01 a.m. ET on August 19, 2026, an additional 50% ad valorem duty applies to certain goods from Canada — for merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after that time. The duties come from three proclamations signed on July 20, 2026 under Section 338 of the Tariff Act of 1930.

Motor vehicles, alcoholic beverages and dairy are the headline categories, but the covered tariff lines reach considerably further — cement, plywood, furniture, textiles and clothing, paper, cosmetics and sporting goods are among them. Together the three proclamations cover roughly US$20 billion in annual imports from Canada.

Two points matter for planning. USMCA preference does not exempt a shipment from these duties, and Section 338 carries no fixed expiration date. For cargo already moving, entry timing decides the rate.

We clear imports in both the United States and Canada. Send us your HTS codes and we will confirm whether your products are on the covered list and what your entry timing means for duty. Contact us.