U.S. Section 338 Tariffs on Certain Canadian-Origin Products

The United States has imposed additional tariffs under Section 338 of the Tariff Act of 1930 on certain products of Canada.

These measures do not apply to every product shipped from Canada. Whether a shipment is affected depends on the product's country of origin and U.S. HTSUS classification.

The Section 338 rules have changed several times since they were first announced, so customers shipping potentially affected goods should confirm the current requirements before shipping.

Current Section 338 Timeline

August 22, 2026: 50% Tariffs Took Effect

The Section 338 tariffs were originally scheduled to begin August 19, 2026, but were temporarily suspended for three days.

That suspension expired, and the additional 50% ad valorem duty took effect at 12:01 a.m. Eastern Time on August 22, 2026 for covered Canadian-origin goods.

September 15, 2026: Product List Changes

Beginning September 15, 2026, the list of products subject to the 50% Section 338 tariffs changes.

CBP's updated guidance adds 122 HTSUS classifications to the Section 338 tariff lists and removes certain classifications that were previously covered.

Because the product lists are based on specific HTSUS codes, do not rely only on a general product category or description when determining whether a shipment is affected.

September 29, 2026: Import Restrictions

Beginning September 29, 2026, certain Canadian products identified in the Section 338 actions will be excluded from importation into the United States rather than simply being subject to the 50% additional duty.

These restrictions affect certain products covered by the alcohol, dairy, and motor-vehicle-related Section 338 actions.

Goods subject to these restrictions that were imported before September 29 but had not yet been entered for consumption may remain subject to the 50% tariff rather than the import ban, depending on the applicable proclamation.

Which Products Are Affected?

Section 338 applies only to products identified by their U.S. Harmonized Tariff Schedule (HTSUS) classification.

The affected lists extend beyond what customers may expect based on the names of the original alcohol, dairy, and motor-vehicle actions.

For that reason, always confirm the exact HTSUS code for your product and compare it with the current official Section 338 list.

You can search U.S. tariff classifications through the U.S. International Trade Commission HTS Search:

https://hts.usitc.gov/

Important: Shipping a product from Canada does not automatically make it Canadian-origin. Country of origin is determined under U.S. customs rules and may differ from the country where the product is stored, sold, or shipped.

Does CUSMA/USMCA Exempt a Product From Section 338?

No.

If a product is covered by the Section 338 measures, qualifying for preferential treatment under CUSMA/USMCA does not remove the additional Section 338 tariff.

You should still provide valid CUSMA/USMCA certification when the goods qualify, since preferential treatment may continue to apply to other eligible duties.

Only products that meet the applicable CUSMA/USMCA rules of origin should be certified.

Can Section 338 Apply in Addition to Section 232?

Yes.

The September 2026 Section 338 changes specifically provide that applicable Section 338 duties can apply in addition to Section 232 tariffs.

This is important because a product covered by both measures may be subject to multiple additional duties.

Do not assume that a product is exempt from Section 338 simply because it is already subject to a Section 232 tariff.

For more information about metal-origin reporting for certain products, see:

[INTERNAL LINK: When Are Melt and Pour or Smelt and Cast Details Required for U.S. Shipments?]

How Is the 50% Tariff Calculated?

For covered goods, Section 338 imposes an additional 50% ad valorem duty.

This means the tariff is calculated as a percentage of the applicable customs value.

Customs value	US$1,000
Section 338 tariff	50%
Additional Section 338 duty	US$500

This is only an example of the Section 338 portion.

Other applicable customs duties, taxes, tariffs, brokerage charges, or fees may also apply.

Does Section 338 Apply to Alcohol?

Some of the Section 338 actions concern alcoholic beverages.

Alcohol shipments are not permitted through the ShipTime platform.

However, customers should not assume that every HTSUS classification included in an alcohol-related Section 338 action represents an alcoholic beverage. Some affected tariff lists can contain other types of products.

Always confirm the actual HTSUS classification rather than relying only on the title of the Section 338 action.

Who Pays the Additional Duty?

Section 338 duties are assessed as part of the U.S. customs entry process.

From a shipping perspective, the courier or customs broker may collect applicable duties from the party designated to pay duties and taxes.

Depending on the shipment:

• The shipper may be responsible for the charges, or
• The recipient/importer may be required to pay them during customs clearance.

The Importer of Record remains responsible to U.S. Customs and Border Protection for the accuracy of the customs entry and applicable duties.

Confirm who will be responsible for duties and taxes before shipping, particularly when a 50% additional tariff could significantly increase the landed cost.

What Should I Check Before Shipping?

Before shipping goods from Canada to the United States:

1. Confirm the correct U.S. HTSUS classification.
2. Confirm the product's country of origin.
3. Check whether the HTSUS classification appears on the current Section 338 list.
4. Confirm whether any additional restrictions take effect on or after September 29, 2026.
5. Continue providing valid CUSMA/USMCA certification when the goods qualify.
6. Check whether Section 232 or another U.S. tariff measure also applies.
7. Confirm whether the shipper or recipient will pay applicable duties and taxes.
8. Make sure the declared customs value and commercial invoice information are accurate.

Tariff rules depend on the specific product and entry date, so confirm the current requirements before shipping.

Frequently Asked Questions

Are the Section 338 tariffs currently in effect?

Yes.

The additional 50% Section 338 tariffs took effect on August 22, 2026 for covered Canadian-origin products.

Didn't the U.S. pause these tariffs?

Yes, but only temporarily.

The original August 19 effective date was suspended for three days. The suspension expired, and the tariffs became effective on August 22.

What changes on September 15, 2026?

The products covered by the 50% tariff change.

CBP's updated list adds 122 HTSUS classifications and removes certain previously covered classifications. Customers should check the current HTSUS list rather than relying on an older product list.

What happens on September 29, 2026?

Certain Canadian products identified in the Section 338 proclamations become prohibited from importation into the United States.

For those goods, paying the 50% tariff will no longer be sufficient to import the product once the applicable restriction takes effect.

Does CUSMA/USMCA remove the 50% tariff?

No.

Covered goods remain subject to Section 338 even when they qualify as originating goods under CUSMA/USMCA.

Can Section 338 and Section 232 apply to the same product?

Yes.

Under the September 2026 changes, applicable Section 338 duties can be imposed in addition to Section 232 tariffs.

Is every Canadian product subject to the 50% tariff?

No.

Only Canadian-origin products falling under the specified HTSUS classifications are subject to the measures.

Need Help With a U.S.-Bound Shipment?

If you're unsure what information to enter in ShipTime or need help understanding a tariff shown on a carrier shipment, contact our Heroic Support™ team. We can help you review the shipment details and clarify the information provided by the carrier.

For questions about whether a specific product is legally subject to Section 338, confirm the HTSUS classification and treatment with U.S. customs resources or a qualified customs professional.

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