Section 338 Tariffs on Canada

Please note that this is an evolving situation and the information below may be subject to change or clarification at any time.

The U.S. has imposed a 50 percent tariff on covered goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Aug. 22, with no apparent termination date.

On Oct. 23, President Trump further modified the list of Canadian goods subject to a Section 338 tariff of 50 percent.

Products initially subject to this tariff (as set forth here, here, and here) 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. On Sept. 8, 2026, the president added more than 100 goods to this list and removed ten (see here and here for more details).

The newest proclamation removes 22 products from the tariff list, including certain plywood sheets, paper products, machinery and refrigeration equipment, and packing crates and boxes. The proclamation also adds 100 products to the list, including certain cocoa powder, paints, soaps, vinyl flooring, carpets, wood and paper products, canoes, chest freezers, valves, instruments, and waste products. Full lists of affected products are available here. These changes will be effective for subject goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on Oct. 30.

The proclamation continues to state that the Section 338 tariff applies to all covered goods (1) regardless of whether they originate under the U.S.-Mexico-Canada Agreement and (2) in addition to any applicable Section 232 tariffs.

A lawsuit challenging the Section 338 tariff on imports from Canada was recently filed at the Court of International Trade.

Canada’s counter-tariffs were effective September 8, 2026. This includes 15, 25, or 50 percent tariffs on hundreds of products drawn from those targeted by U.S. Section 338 and Section 232 tariffs (click here for full list). Canada’s tariffs take effect September 8, 2026.

For questions about your specific situation, please contact us at tariffs@strtrade.com.

Affected Products

Affected products are set forth in the annexes of the original proclamations, which are available here, here, and here, the Sept. 8 proclamations, available here and here, and the Oct. 23 removals. 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.

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. 22, with no apparent termination date. This is a three day delay from the original effective date of Aug. 19. The tariff on the additional products will be effective at 12:01 am Sept. 15, 2026.

All proclamations provide that the tariff could be further modified in the future but give no indication as to when or under what conditions that may occur.

Excluded Products

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), certain other goods, such as fish or critical minerals, and products excluded in the Sept. 8 and Oct. 23 proclamations.

Section 338 Statute

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.

Official Documents

• Presidential Proclamation: Further Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles (October 23, 2026)
• CSMS #70050970 – Certain Canadian Products Excluded from Importation into the United States; Presidential Proclamations 11061, 11062, and 11063 (September 28, 2026)
• CSMS #69851916: Modifying Section 338 Additional Duties on Certain Goods of Canada (September 11, 2026)
• Presidential Proclamation: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vechicles (September 8, 2026)
• Presidential Proclamation: Excluding Certain Canadian Products from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages (September 8, 2026)
• Presidential Proclamation: Excluding Certain Canadian Products from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Dairy (September 8, 2026)
• Presidential Proclamation: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages (September 8, 2026)
• Presidential Proclamation: Excluding Certain Canadian Products from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Motor Vehicles (September 8, 2026)
• CSMS #69606660 – GUIDANCE: Section 338 Additional Duties on Certain Goods of Canada (August 21, 2026)
• Presidential Proclamation: Temporary Suspension of Additional Dutues to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages, Dairy, and Motor Vehicles (August 18, 2026)
• Presidential Proclamation: Imposing Additioanl Duties to Offset Canadian Discrimination Against The Commerce of The United States With Respect to Dairy (July 20, 2026)
• Presidential Proclamation: Imposing Additioanl Duties to Offset Canadian Discrimination Against The Commerce of The United States With Respect to Alcoholic Beverages (July 20, 2026)
• Presidential Proclamation: Imposing Additioanl Duties to Offset Canadian Discrimination Against The Commerce of The United States With Respect to Motor Vehicles (July 20, 2026)