Section 338 duties on Canadian goods: dairy dispute: Products, Rates and Dates

What it is

The President found that Canada discriminates against U.S. commerce (Canada lets retailers use its cheese tariff-rate quota under the EU trade agreement (CETA) but not the one under USMCA) and, under Section 338, put an extra 50% on a list of 52 Canadian products from Aug 22, 2026 (a 3-day suspension moved the start from Aug 19). The list isn't limited to dairy. Goods under the listed Section 232 tariffs are exempt. From Sep 29, 2026, 14 of the listed products can't be imported at all (Proclamation 11062); goods imported before then still pay the 50% when entered.

Legal authority: Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338); Proclamation 11047 of Jul 20, 2026, as amended by Proclamation 11056. Section 338 of the Tariff Act of 1930 lets the President impose additional duties of up to 50% on goods from countries that discriminate against U.S. commerce.

It reaches 52 listed tariff codes or code groups (a listed heading or subheading covers every code under it).

Rates

"+" rates are added on top of the regular duty. Chapter 99 headings are the numbers filed on the entry along with the product's own code.

+50%Since Aug 22, 2026
Origin
Canada
Products
Products listed in U.S. note 51(b)(2) to chapter 99, subchapter III (52 codes listed)
Heading
9903.03.13

How it combines with other duties

Charged on top of the base rate and any other chapter 99 duty, including the forced-labor Section 301 tariff; goods under the listed Section 232 headings (note 51(c)) are exempt. Goods eligible for USMCA or other special rates still pay it. It doesn't apply to "goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule", "except for goods entered under subchapter XXIII of chapter 98 of the tariff schedule, subheadings 9802.00.40, 9802.00.50 and 9802.00.60, and heading 9802.00.80". For 9802.00.40, 9802.00.50 and 9802.00.60 it applies to "the value of repairs, alterations or processing performed", and for 9802.00.80 to "the value of the article assembled abroad, less the cost or value of such products of the United States" (U.S. note 51(a)). Antidumping and countervailing duties still apply.

Exemptions

Where an exemption turns on a legal condition, the condition is quoted exactly as the law states it.

Exempt when another tariff applies instead (8)

Steel, aluminum and copper goods under Section 232Origin: CanadaLegal text: articles of aluminum, of steel or of copper or derivative aluminum or steel articles provided for in headings 9903.82.02 and 9903.82.04–9903.82.269903.03.15
Cars and light trucks under Section 232Origin: CanadaLegal text: passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and light trucks provided for in headings 9903.94.01, 9903.94.02 (as applied to the U.S. content of passenger vehicles and light trucks described in subdivision 33(d) of this subchapter upon approval from the Secretary of Commerce), 9903.94.03, 9903.94.31, 9903.94.40, 9903.94.41, 9903.94.50, 9903.94.51, 9903.94.60 and 9903.94.619903.03.15
Car and light-truck parts under Section 232Origin: CanadaLegal text: parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and parts of light trucks provided for in headings 9903.94.05, 9903.94.06 (as applied to parts of passenger vehicles that are eligible for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA) other than automobile knock-down kits or parts compilations), 9903.94.07, 9903.94.32, 9903.94.33, 9903.94.42, 9903.94.43, 9903.94.44, 9903.94.45, 9903.94.52, 9903.94.53, 9903.94.54, 9903.94.55, 9903.94.62, 9903.94.63, 9903.94.64, 9903.94.65, 9903.94.66, 9903.94.67, 9903.94.68 and 9903.94.69, and parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and parts of light trucks subject to an import adjustment offset pursuant to Proclamation 10925 of April 29, 2025 (90 FR 18899), as amended9903.03.15
Wood products under Section 232Origin: CanadaLegal text: wood products provided for in headings 9903.76.01, 9903.76.02, 9903.76.03, 9903.76.20, 9903.76.21, 9903.76.22, 9903.76.23 and 9903.76.249903.03.15
Medium and heavy trucks and buses under Section 232Origin: CanadaLegal text: medium- and heavy-duty vehicles, buses and other vehicles provided for in headings 9903.74.01, 9903.74.02, 9903.74.03 and 9903.74.069903.03.15
Medium and heavy truck parts under Section 232Origin: CanadaLegal text: medium- and heavy-duty vehicle parts provided for in headings 9903.74.08, 9903.74.09 and 9903.74.10, and parts of medium- and heavy-duty vehicles subject to an import adjustment offset pursuant to Proclamation 10984 of October 17, 2025 (90 FR 48451)9903.03.15
Semiconductors under Section 232Origin: CanadaLegal text: semiconductor articles provided for in heading 9903.79.019903.03.15
Patented medicines under Section 232Origin: CanadaLegal text: patented pharmaceutical articles provided for in headings 9903.04.60–9903.04.669903.03.15

Exempt for certain uses (1)

Civil aircraft (note 51(d))Origin: CanadaCodes listed in U.S. note 51(d) to chapter 99, subchapter IIILegal text: articles of civil aircraft (all aircraft other than military aircraft and unmanned aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components the product of Canada, that otherwise meet the criteria of General Note 6 of the HTSUS9903.03.16

Import bans

These goods can't be imported at all while the ban is in force, whatever the duty.

Products on Proclamation 11062's import-ban listOrigin: CanadaSince Sep 29, 2026

What changed

Sep 29, 2026Import bans on some Canadian products on the Section 338 lists take effect
Aug 22, 2026Section 338 duties of 50% on listed Canadian products start

Sources

Checked against these sources on Oct 1, 2026. Rates shown are what CBP collects; antidumping and countervailing duties are separate.