These duties, imposed pursuant to Section 338 of the Tariff Act of 1930, are now effective for goods from Canada with a covered HTSUS classification that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on August 22, 2026.

The duties do not apply to articles of aluminum, steel, or copper; derivative aluminum or steel articles; or goods for which entry is properly claimed under a provision of Chapter 98. However, for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duty applies to the value of the repairs, alterations, or processing performed, as described in the applicable subheading. For goods entered under subheading 9802.00.80, the additional duty applies to the value of the article assembled abroad, less the cost or value of U.S. products incorporated into the article, as described in that subheading.

The duties apply regardless of whether the goods qualify for preferential treatment under the USMCA.

Finally, the additional duty is subject to drawback.

Please find the full list of covered Chapter 1 through 97 HTSUS classifications, along with their corresponding Chapter 99 headings, here.

Countries that have committed to adopting and effectively enforcing forced labor import prohibitions will be subject to a 10% tariff, while countries that have failed to adopt a forced labor import prohibition will be subject to a 12.5% tariff.

Specifically:

• A 10% tariff will apply to the following countries: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
• A 10% or 12.5% tariff, net of the Most-Favored-Nation (MFN) rate, will apply to certain products of the European Union, Taiwan, Japan, Korea, and Switzerland.
• A 12.5% tariff will apply to all other investigated economies, including Brazil, Costa Rica, China, the Dominican Republic, the Philippines, Thailand, and Vietnam.

An in-transit exception applies to goods that: (1) were loaded onto a vessel at the port of loading and were in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. Eastern Time on July 24, 2026; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. Eastern Time on July 28, 2026.

Exceptions include:

• All articles and parts of articles subject to Section 232 tariffs.
• Textile or apparel articles that are products of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua and are entered free of duty under DR-CAFTA.
• Any products of Canada or Mexico entered free of duty under the United States-Mexico-Canada Agreement.
• Informational materials.
• Goods for which entry is properly claimed under a provision of Chapter 98 of the HTS. However, for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed, as described in the applicable subheading. For goods entered under heading 9802.00.80, the additional duties apply to the value of the article assembled abroad, less the cost or value of such products of the United States.

For a full list of exemptions, or to discuss how these new tariffs will impact your business, please call us.

We will continue to monitor developments closely and provide updates as additional guidance or implementing measures become available.

For further information, please contact us.

The Court, unusually, has also instructed Rodney S. Scott, Commissioner of Customs, to appear in person on June 9, 2026, to discuss the agency’s plans to comply with the Court’s order to reliquidate all applicable entries without IEEPA duties.

Customs has also been instructed to submit an updated CAPE progress report by June 10, 2026.

Collectively, these developments suggest that the CIT is considering the possibility of ordering the broad refund of all IEEPA duties, including those associated with entries presently excluded from CAPE phase 1.

However, it is also possible the government will respond to these instructions by filing an appeal to the CIT’s original refund order. Any appeal would need to be filed by June 6, 2026.

With so many questions remaining, it is imperative that you continue to take the necessary steps to protect your company’s IEEPA refunds.

Please contact us to discuss the best course of action for your company at this time.