TRADE ALERT – IMPORTS
HEADLINE	Administration Implements Additional Section 338 Tariffs on Canada
DATE	September 15, 2026
AGENCY	Department of Commerce; Department of Treasury; Department of Homeland Security; U.S. Trade Representative; Customs and Border Protection; Trump Administration
EFFECTIVE DATE	September 15, 2026 at 12:01 a.m. Eastern time; September 29, 2026
BACKGROUND	Section 338 of the Tariff Act of 1930 allows the President to respond to discrimination by foreign countries by declaring additional duties. To impose tariffs under Section 338, the President is required to find that a foreign country imposes an unreasonable charge, exaction, regulation, or limitation that is not equally enforced on the like articles of every foreign country, or discriminates in fact against U.S. commerce in a way that places the commerce of the United States at a disadvantage compared to the commerce of any foreign country. These tariffs may not exceed 50% and may not take effect earlier than 30 days after the President’s proclamation. Section 338 allows the President to suspend, revoke, supplement, or amend any proclamation under Section 338, including the ability to exclude articles from importation.   On July 20, 2026, President Trump issued three Proclamations under Section 338 to impose an additional 50% tariff on certain Canadian products in retaliation for restrictions on the sale of U.S. alcohol, and imports of U.S. automobiles and dairy products.   Canada implemented retaliatory tariffs ranging from 15-50% on U.S. products, covering $27.6 billion in imports, effective September 8, 2026.
DETAILS	On September 8, 2026, following the continued breakdown of bilateral trade negotiations between the U.S. and Canada, President Trump issued five Proclamations pursuant to Section 338 that bans the importation of certain Canadian products, and modifies the scope of the tariffs on certain products from the July 20, 2026.   Modification of Motor Vehicle Proclamation To continue to offset the burden or disadvantage on U.S. commerce established in Proclamation 11048: • A 50% tariff will be newly imposed on all articles listed in Annex I, Part A, including additional dairy products, paper products, aluminum and iron products, and furniture. • The 50% tariff previously imposed in Proclamation 11048 will be removed for articles listed in Annex I, Part B, including salt, toilet tissue, and refined lead. These modifications are effective September 15, 2026, 12:01 Eastern time.   Modification of Alcoholic Beverages Proclamation To continue to offset the burden or disadvantage on U.S. commerce established in Proclamation 11046: • A 50% tariff will be imposed on all articles listed in Annex I, Part A, including Swiss, cheddar, Parmesan, Roquefort and Gouda cheeses, raw hides and skins, and motorboats. • The 50% tariff previously imposed in Proclamation 11046 will be removed for articles listed in Annex I, Part B, including whiskies and liqueurs over 4 liters. These modifications are effective September 15, 2026, 12:01 Eastern time.   Exclusion of Alcoholic Beverages Proclamation To address additional retaliation through new regional Canadian tariffs on U.S. alcoholic beverages following the imposition of Proclamation 11046: • Certain products of Canada are excluded from importation into the U.S. as listed in Annex I, including malt beer, wine, vermouth, brandy, bourbon, rye, rum, gin, vodka, and tequila. These modifications are effective September 29, 2026, 12:01 Eastern time.   Exclusion of Dairy Proclamation To address Canada’s continuing tariff-rate quotas on dairy following the implementation of tariffs through Proclamation 11047: • Certain products of Canada are excluded from importation into the U.S. as listed in Annex I, including whey, molasses, and non-alcoholic beer. These modifications are effective September 29, 2026, 12:01 Eastern time.   Exclusion of Motor Vehicles Proclamation To address Canada’s continuing motor vehicle tariffs following the implementation of tariffs through Proclamation 11048: • Motorcycles of Canada are excluded from importation into the U.S. as listed in Annex I. These modifications are effective September 29, 2026, 12:01 eastern time.   No USMCA exception will apply to the Section 338 tariffs and the amended Section 338 tariffs will apply in addition to tariffs imposed under Section 232.
BASIS	Trade Act of 1930 (Section 338), 19 U.S.C. § 1338; Trade Act of 1930 (Section 604), 19 U.S.C. § 2483
HTS/  PRODUCTS	Products as defined
COUNTRY	Canada
CITE	White House: Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the United States with Respect to Motor Vehicles – The White House   White House: 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 – The White House   White House: Excluding Certain Canadian Alcoholic Beverages from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages – The White House   White House: 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 – The White House   White House: 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 – The White House   White House: Fact Sheet: President Donald J. Trump Responds to Canada’s Retaliation – The White House   CBP CSMS: CSMS # 69851916 – Modifying Section 338 Additional Duties on Certain Goods of Canada

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