New 50% Tariffs on Canadian Goods
Updated: Jul 28
🔓 🇺🇸 President Trump signed three proclamations under Section 338 of the Tariff Act of 1930, adding a 50% tariff on certain Canadian imports, including some USMCA-originating goods.
Summary: The United States has imposed a 50% tariff on certain Canadian imports through three Presidential Proclamations under Section 338 of the Tariff Act of 1930, effective 30 days after signing. USMCA origin status does not automatically exempt these goods, so importers must verify if their products are affected. Companies should promptly review product classifications, origin determinations, contracts, and landed-cost calculations to assess the tariffs' impact. |
What Has Changed?
President Trump has issued three proclamations under Section 338 of the Tariff Act of 1930, imposing an additional 50% tariff on selected Canadian products.
The measures cover a broad range of goods, including products such as:
Wine
Hockey sticks
Cement
Other specified Canadian-origin products
The additional tariffs are scheduled to take effect 30 days after signature, giving importers a limited window to assess supply chains and compliance obligations before implementation.
Why This Matters for Importers
Many businesses assume that products qualifying under the United States-Mexico-Canada Agreement (USMCA) are automatically protected from additional tariffs.
However, the new Section 338 measures make clear that USMCA origin alone does not exempt covered goods from the additional 50% tariff.
This distinction is particularly important for companies that have structured their sourcing strategies around preferential USMCA treatment. Importers will need to evaluate both their eligibility for USMCA benefits and whether their products fall within the scope of the new Section 338 measures.
Products Excluded from the Additional Tariffs
According to the proclamations, several categories of goods are excluded from the new measures, including:
Energy products
Potash
Products already subject to Section 232 tariffs
Certain fish products
Certain critical minerals
Importers should carefully review the scope of the proclamations to determine whether their products qualify for an exclusion.
What Should Businesses Review?
Companies importing goods from Canada should consider reviewing:
Harmonized Tariff Schedule (HTS) classifications
Country-of-origin determinations
USMCA qualification
Product-specific exclusions
Existing Section 232 exposure
Contracts and pricing arrangements
Landed-cost calculations
Duty mitigation opportunities
Early assessment can help businesses understand financial exposure and prepare for the operational impact of the new measures.
Looking Ahead
The new Section 338 tariffs represent another significant development in North American trade policy and demonstrate that preferential trade agreements do not necessarily shield products from additional trade measures introduced under separate legal authorities.
Businesses importing from Canada should closely monitor implementation guidance, review the scope of covered products, and engage customs specialists where necessary to ensure compliance and minimize unexpected duty exposure.
Sources
The White House – Fact Sheet: President Donald J. Trump Imposes Additional Tariffs on Canada
The White House – Presidential Proclamation (Motor Vehicles)
The White House – Presidential Proclamation (Alcoholic Beverages)
The White House – Presidential Proclamation (Dairy)
Office of the United States Trade Representative (USTR)
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Author
Ann Karen | Head of Growth
Updated: July 2026
Related Topics
#USTariffs #Section338 #USMCA #CanadaTrade #TradeCompliance #CustomsCompliance #Tariffs #InternationalTrade #SupplyChain #TradeRemedies #ImportCompliance #CustomsManager
Disclaimer
This article is provided for general informational purposes only and does not constitute legal, customs or tax advice. Businesses should seek professional advice based on their individual trading arrangements and compliance obligations.
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