Section 338 Tariffs Imposed on Canadian Imports Effective August 19, 2026

Executive Orders Issued to Counter Canadian Trade Practices 

On July 20, 2026, the United States president signed three Executive Orders (EO) imposing additional Section 338 tariffs on several Canadian-origin goods, including cosmetics, food and machinery imports. The tariff has been set at 50% in all cases, of the entered value of the imported goods. 

These tariffs will apply to eligible Canadian imports entered into for consumption or withdrawn from warehouse for consumption in the United States, on or after 12:01 a.m. eastern time on August 19, 2026.  

Signed Executive Orders 

The three signed Executive Orders are as follows: 

• Imposing Additional Duties To Offset Canadian Discrimination Against The Commerce Of The United States With Respect To Dairy

• Imposing Additional Duties To Offset Canadian Discrimination Against The Commerce Of The United States With Respect To Alcoholic Beverages

• Imposing Additional Duties To Offset Canadian Discrimination Against The Commerce Of The United States With Respect To Motor Vehicles

What Importers Should Know 

• Each Executive Order includes two annexes: 

• • Annex 1 indicates products by U.S. Harmonized Tariff System (HTS) codes that are subject to the Section 338 tariff. 

• • Annex 2 outlines the changes made to the U.S. tariff schedule.  

• Products eligible for the United States-Mexico-Canada Free Trade Benefit (USMCA) remain subject to the Section 338 tariffs:  

• • Any products already subject to the Section 232 tariffs (Including steel, aluminum, copper and automotive parts) are exempt. 

•  Many energy, mineral and fishery products are exempt from these Section 338 tariffs. 

• The Executive Orders do not provide any in-transit exemption for goods.  

• Entered (declared) import values must be compliant and should be carefully reviewed to potentially mitigate the impact of applicable tariffs. 

Further related guidance will be provided by U.S. Customs through the U.S. Federal Register or its Cargo Systems Messaging Service (CSMS) system. A related fact sheet provided by the Administration can be accessed here. 

Delmar Support 

Our U.S. Customs Advisory Services team remains available to assist importers with any clarification or assistance. 

 Delmar continues to monitor related developments closely and will share pertinent information as it becomes available.  

For additional information and assistance, connect with a Delmar Specialist via the myDelmar™ portal.