Please note that this is an evolving situation and the information below may be subject to change or clarification at any time.
On July 20, 2026, President Trump issued three separate proclamations imposing an additional 50 percent tariff on about $20 billion worth of imports of automobiles, alcoholic beverages, and dairy from Canada.
These were issued under Section 338 of the Tariff Act of 1930, the first time that statute has been used for that purpose. According to the proclamations, Section 338 empowers the president to impose tariffs on imports of a foreign country to offset the burden or disadvantage from its discrimination against or unequal imposition on U.S. commerce.
The tariff will take effect Aug. 19, 2026, giving the U.S. and Canada time to address those irritants before the tariff is assessed. Press sources cited Prime Minister Mark Carney as saying the two sides will immediately intensify negotiations, and there has been no indication thus far that Canada plans to impose retaliatory tariffs.
General information on this action is below, but for questions about your specific situation, please contact us at tariffs@strtrade.com.
Effective Dates
The new tariff will be effective for covered goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Aug. 19, with no apparent termination date. The proclamations provide that the tariff could be modified in the future but give no indication as to when or under what conditions that may occur.
Affected Products
Affected products are set forth in the annexes of the proclamations, which are available here, here, and here. These products include wine and other alcoholic beverages, cosmetics, ice skates, hockey sticks, fishing rods, cement, paper and wood items, honey, textiles and apparel, machinery, jewelry, furniture, and other items.
Unlike previous additional tariffs, the Section 338 tariff will apply to all covered goods regardless of whether they are originating under the U.S.-Mexico-Canada Agreement. It will also stack on top of any other applicable duties.
Exceptions
The tariff will not apply to energy, potash, products subject to Section 232 tariffs, articles subject to the World Trade Organization Agreement on Trade in Civil Aircraft (except drones), and certain other goods, such as fish or critical minerals.
Official Documents