section 338 – Sharretts, Paley, Carter & Blauvelt, P.C.

Section 338 Duties on Certain Products of Canada Now in Effect

Geraldine Tourny — Mon, 24 Aug 2026 19:27:08 +0000

As previously advised, the Administration has decided to impose an additional ad valorem duty of 50% on certain products from Canada.

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1930, are now effective for goods from Canada with a covered HTSUS classification that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on August 22, 2026.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.

Section 338 Duties on Certain Products from Canada

Geraldine Tourny — Wed, 22 Jul 2026 19:11:39 +0000

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.