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National Law Review
National Law Review
7/22/2026
First-Ever Section 338 Tariffs: U.S. Imposes 50% Duties on Nearly $20 Billion of Canadian Imports

First-Ever Section 338 Tariffs: U.S. Imposes 50% Duties on Nearly $20 Billion of Canadian Imports

Short summary

The U.S. imposed 50% duties on nearly $20 billion of Canadian imports under Section 338 of the Tariff Act of 1930, the first-ever use of this authority. The tariffs cover goods beyond autos, alcohol, and dairy, and USMCA qualification does not exempt covered products. Importers face an Aug. 19 deadline and should review classification, transit goods, contracts, and mitigation strategies immediately.

  • First-ever Section 338 tariffs impose 50% duties on ~$20B of Canadian imports effective Aug 19
  • Coverage extends beyond autos/alcohol/dairy; USMCA qualification is not an exemption
  • Importers should review HTSUS classification, transit goods, customs bonds, and refund rights before deadline

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