Client AlertsSection 338 Duties on Certain Products from Canada

July 22, 2026

The Administration has decided to impose an additional ad valorem duty of 50% on certain products of Canada, effective as of 12:01 a.m. Eastern Time on August 19, 2026.

The duties are imposed pursuant to Section 338 of the Tariff Act of 1930 in response to Canada’s perceived discriminatory treatment of American products.

The duties concern a large array of goods, including numerous goods classified under the following HTSUS Chapters:

  • Chapter 39 – Articles of plastics
  • Chapter 42 – Trunks, suitcases, travel, sports, and similar bags of various construction, as well as articles of leather or composition leather
  • Chapter 61 – Knitted or crocheted apparel and clothing accessories
  • Chapter 62 – Non-knitted or non-crocheted apparel and clothing accessories
  • Chapter 63 – Other made-up textile articles
  • Chapter 65 – Certain hats
  • Chapter 71 – Various articles of jewelry
  • Chapter 85 – Electrical equipment and machinery,
  • Chapter 94 – Furniture
  • Chapter 95 – Toys and games

The duties do not apply to articles subject to duties pursuant to Section 232, but apply regardless of whether the goods qualify for preferential treatment under the USMCA.

Further talks between Canada and the United States are expected and may result in changes to these measures.

If you wish to discuss these actions or how they may affect your imports, please do not hesitate to contact us.

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