At a glance
- Recommended action
- Review classifications, shipment timing, sourcing exposure, and cumulative duties before the effective dates.
- Effective date
- September 15 and September 29, 2026
- What changed
- The United States revised Section 338 tariff coverage and announced import bans on selected Canadian products.
- Who is affected
- Importers of affected Canadian-origin dairy, alcoholic beverage, motor vehicle, and newly listed products.
- Business impact
- Affected goods may face revised 50% duties, import bans, or cumulative Section 232 and Section 338 exposure.
Recommended actions
What importers should do next
- Review classifications against the revised tariff and import-ban annexes.
- Identify products added to or removed from Section 338 coverage.
- Evaluate exposure to affected Canadian-origin goods and cumulative duties.
- Plan shipment and inventory timing around September 15 and September 29.
- Coordinate entry processing with customs brokers and trade compliance teams.
Key takeaway
Revised 50% Section 338 duties begin September 15, while selected Canadian alcoholic beverages, dairy products, and motor vehicles face import bans beginning September 29.
On September 8, 2026, President Trump signed five proclamations under Section 338 of the Tariff Act of 1930 that expand trade restrictions on certain Canadian-origin products and modify measures previously announced on July 20, 2026.
According to the White House, these actions were taken in response to what the Administration describes as Canada's continued discriminatory treatment of U.S. commerce, including approximately $20 billion in retaliatory tariffs imposed on U.S. exports following the suspension of bilateral trade discussions.
The new measures include:
- Changes to the list of Canadian products subject to an additional 50% Section 338 duty.
- Removal of certain products, including rock salt and cement, from the tariff scope.
- Addition of new products to the tariff scope, including certain all-terrain vehicles (ATVs) and additional dairy products.
- Import bans on specified Canadian alcoholic beverages, dairy products, and motor vehicles.
- Continued application of Section 338 duties regardless of USMCA eligibility.
- Continued application of Section 338 duties in addition to applicable Section 232 duties.
In addition to the trade measures, the President directed the U.S. Trade Representative (USTR) and the General Services Administration (GSA) to remove Canadian-origin products from the GSA Multiple Award Schedules program, which administers more than $50 billion in annual federal procurement activity.
- Revised product lists for the 50% Section 338 duties become effective.
- Certain products will be added to, and removed from, the scope of the existing tariffs.
- Corresponding HTSUS modifications take effect.
- Import bans on designated Canadian alcoholic beverages become effective. • Import bans on designated Canadian dairy products become effective. • Import bans on designated Canadian motor vehicles become effective.
Effective September 29, 2026, specified Canadian-origin products identified in the respective proclamations will be prohibited from importation into the United States.
The import bans affect selected:
- Alcoholic beverages
- Dairy products
- Motor vehicles
Products imported into the United States prior to September 29, 2026, but not yet entered for consumption or withdrawn from warehouse for consumption, will remain subject to the applicable 50% Section 338 duties rather than the import prohibition.
The motor vehicle Import ban specifically identifies the following HTSUS classification:
8711.50.00 – Motorcycles (including mopeds) and cycles fitted with a reciprocating internal-combustion piston engine with a cylinder capacity exceeding 800 cc
Crane Worldwide Logistics recommends that importers:
- Review product classifications against the revised tariff and import-ban annexes.
- Identify products that have been added to or removed from the Section 338 tariff scope.
- Evaluate supply chain exposure to affected Canadian-origin goods.
- Consider shipment timing and inventory planning prior to the September 15 and September 29 effective dates.
- Assess cumulative duty exposure where both Section 338 and Section 232 duties may apply.
- Coordinate with customs brokers and trade compliance teams to ensure proper entry processing and duty payment.
Crane Trade Consulting is actively monitoring these developments and is available to assist with can assist importers with HTS classification reviews, Duty impact assessments, Supply chain risk evaluations, Import planning strategies, and Customs compliance guidance. For additional consultation on a case-by-case basis, please contact our Trade Advisory team.
Need help assessing the new Section 338 measures?
Crane Trade Consulting can support classification reviews, duty-impact assessments, supply chain risk evaluation, import planning, and customs compliance.