Section 338 duties of 50% on listed Canadian products start
From Aug 22, 2026, three lists of Canadian products pay an extra 50% under Section 338 of the Tariff Act of 1930, in response to Canada's treatment of U.S. alcoholic beverages, dairy and motor vehicles. The start moved from Aug 19 after a three-day suspension.
From Aug 22, 2026, CBP collects an additional 50% duty on the Canadian products listed in U.S. note 51, on top of the regular duty. The President imposed the duties on Jul 20, 2026 under Section 338 of the Tariff Act of 1930, in three proclamations, each with its own product list and heading:
- alcoholic beverages: Proclamation 11046 (91 FR 46639), heading 9903.03.12
- dairy: Proclamation 11047 (91 FR 46653), heading 9903.03.13
- motor vehicles: Proclamation 11048 (91 FR 46663), heading 9903.03.14
The duties were to start Aug 19, 2026. Proclamation 11056 (91 FR 54789) suspended them for three days and moved the start to 12:01 a.m. eastern time on Aug 22, 2026.
At the start, goods subject to Section 232 duties were exempt (heading 9903.03.15), and so were civil aircraft and their engines, parts and components, other than unmanned aircraft (heading 9903.03.16). CBP's message has the list of classifications under each heading. Program pages: alcoholic beverages, dairy, motor vehicles.