On July 20, 2026, President Donald Trump issued three Proclamations pursuant to Section 338 of the Tariff Act of 1930 imposing 50% tariffs on imports of certain Canadian goods. The Proclamations, “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy,” “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages,” and “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles,” were made “in response to Canada’s discriminatory treatment of American products.” The tariffs are set to take effect on August 19.
The tariffs under Section 338 cover products such as wine, hockey sticks, and cement. The tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA). These Section 338 tariffs will not apply to energy, potash, products subject to tariffs under Section 232, and certain other goods, such as fish or critical minerals. The tariffs will take effect 30 days after signing and “are designed to offset the burden and disadvantage on U.S. commerce from Canada’s discrimination.”
Each of the three Proclamations provides a list of goods subject to the additional ad valorem duties under Section 338. Annex I of the Proclamations identifies the universe of covered products, while Annex II provides a list of Harmonized Tariff Schedule of the United States (HTSUS) Chapter 99 classifications subject to Section 338.
Section 338 of the Tariff Act of 1930 is a statutory trade enforcement provision that authorizes the president to impose additional or retaliatory tariffs on imports from foreign countries that discriminate against U.S. commerce or impose unequal trade restrictions for the public interest.
This marks the first time that Section 338 has ever been used for tariffs. Policymakers argue that Section 338 is defunct, since new legislation enacted in 1962 and 1974 supersedes it.