The New Tariff Landscape - President Invokes Section 338 of the Tariff Act of 1930

Short summary

President Trump invoked the previously unused Section 338 of the Tariff Act of 1930 to impose 50% tariffs on Canadian motor vehicles, alcohol, and dairy starting August 19, 2026, bypassing the investigation requirements of Section 301 or 232. The tariffs breach USMCA and GATT commitments on their face, but importers lack a private right of action and WTO appeals would take years, leaving only political remedies. Companies importing affected Canadian goods have a narrow window before the tariffs take effect to bring product into the U.S.

• •50% tariffs on Canadian vehicles, alcohol, and dairy effective Aug 19, 2026 under never-before-used Section 338
• •Statute requires no investigation or hearing, unlike Section 301/232, making it a fast-bridge tool
• •Legal challenges likely but practical recourse is limited; importers should act before the 30-day notice period expires

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