New 50% Section 338 Tariffs on Select Canadian Goods Take Effect August 19
Importers of targeted Canadian goods must prepare for steep cost increases ahead of August 19, when 50% Section 338 tariffs take effect with no USMCA exemption available.
The U.S. has finalized three 50% tariffs on specific categories of Canadian goods under Section 338 of the Tariff Act of 1930, set to take effect August 19. Contrary to common industry assumptions, goods covered by the United States-Mexico-Canada Agreement (USMCA) will not qualify for exemptions from these new duties. Importers of affected Canadian products must immediately review their supply chains to identify covered items, assess the full financial impact of the new tariffs, evaluate alternative sourcing options, and confirm proper product classification to avoid unexpected duty liabilities when the tariffs go into effect.