New U.S. Trade Measures Increase Section 338 Duties and Restrict Imports of Select Canadian Products

United States Announces Additional Trade Measures and Import Bans on Certain Canadian Goods

September 2026

Canada USA Container Tariff

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.

Federal Procurement Impact

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.

Effective Dates

September 15, 2026

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.

September 29, 2026

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.

Import Bans

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.

Import Bans Product Classification

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

Recommended Actions for Importers

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.

Disclaimer

This advisory is provided for informational purposes only and does not constitute legal advice. Companies should consult legal counsel and trade compliance professionals regarding their specific compliance obligations.

How Crane Trade Consulting Can Help

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.