On September 8, 2026, President Trump issued five Proclamations that banned imports of certain products from Canada and modified the scope of products subject to 50% tariffs under Section 338 of the Tariff Act of 1930 (Section 338) including subjecting new products to the tariffs.
Background
President Trump imposed the latest import ban and Section 338 tariffs modifications in response to Canadian tariffs on U.S. products that took effect on September 8, 2026. Canada imposed tariffs of 15%, 25% and 50% on imports from the United States in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The Canadian tariffs were in response to the U.S. administration’s imposition of 50% Section 338 tariffs, first announced on July 20, 2026 on a host of Canadian products to address discriminatory trade practices against U.S. alcoholic beverages, motor vehicles and dairy. Those tariffs which were originally effective August 18, 2026, were delayed for three days until August 21, 2026 to allow for negotiations between the two trading partners. However, with the two countries failing to reach an agreement, the 50% Section 338 tariffs became effective August 22, 2026.
Section 338 authorizes the President, where he determines it will serve the public interest, to offset a burden or disadvantage on U.S. commerce caused by a foreign country’s unreasonable or discriminatory treatment by imposing additional duties of up to 50% ad valorem. The statute also authorizes the President to suspend, revoke, supplement, or amend any Section 338 proclamation whenever the public interest requires. President Trump relied on the statutory authority to impose import bans as well as modify and add to the list of products subject to the 50% tariffs.
Products Banned
The products subject to the import bans are included in three Proclamations one each related to alcoholic beverages, dairy and motor vehicles. The Proclamation related to alcoholic beverages bans the import of certain Canadian products under Chapter 22 of the Harmonized Tariff of the United States (HTSUS) such as beers, wines, vermouth, sake, brandy, scotch whisky, bourbon, rum, gin and vodka. The Proclamation related to dairy bans imports of certain Canadian products under Chapter 4, 17 and 22 of the HTSUS such as whey, molasses and non-alcoholic beer. The Proclamation related to motor vehicles bans imports of motorcycles of a cylinder capacity over 800 cc classified under HTSUS Subheading 8711.50.00.
The import bans under the three lists are effective September 29, 2026. Further, the three Proclamations clarify that in the event the import bans are invalidated, then the affected products will be subject to the 50% Section 338 tariffs.
Inclusions and Removals
The administration has issued two Proclamations, one related to alcoholic beverages and the other related to motor vehicles which lists products that are newly subject to the 50% Section 338 tariffs as well as products that are removed from the scope of the tariffs.
New products covered by the alcoholic beverages proclamation include certain variety of cheeses under Chapter 4 of the HTSUS, animal and vegetable facts under HTSUS Subheading 1518.00.40, certain hides and fur skins under Chapter 41 and 43 and certain motor boats under HTSUS heading 8903. Products removed from the scope of the Section 338 tariffs include whiskies and liquors over 4 liters in HTSUS heading 2208.
New products covered by the motor vehicles proclamation include cheese not made from cow’s milk under HTSUS subheading 0406.90.99, certain paper under HTSUS heading 4802, certain iron and steel columns under HTSUS heading 7308, certain aluminum non-alloyed profiles, bars, rods under HTSUS heading 7604 and tubes and pipes under HTSUS heading 7608, certain iron and steel and base metal fittings, electrodes and wires in Chapter 83, golf carts, vehicles not exceeding 1000 cc and motorboats in Chapter 87 and 89, certain wooden and bamboo furniture in Chapter 94 and electric tables and desks in Chapter 85. Products removed from the scope of Section 338 tariffs span HTSUS Chapters 25, 48, 78, 85 and 95. These include salt, Portland cement, toilet paper, bedsheets made of paper pulp, unwrought refined lead, switchgear assemblies and fishing rods.
The modifications outlined above are effective September 15, 2026. The tariffs do not apply to goods that qualify as articles of civil aircraft or aircraft parts that meet the criteria of HTSUS General Note 6. Importantly, the Section 338 tariffs stack on top of existing tariffs imposed under Section 232 of the Trade Expansion Act of 1962 and provide no exemption for goods qualifying for preference under the United States-Mexico-Canada (USMCA) free trade agreement.
A fact sheet accompanying the Section 338 tariff proclamations also indicates that the President has directed the U.S. Trade Representative and the Administrator of the General Services Administration (GSA) to remove Canadian-origin products from GSA’s Multiple Award Schedules which manage over $50 billion in federal procurement. An official announcement related to the government procurement restriction is awaited.
The Husch Blackwell International Trade and Supply Chain team continues to monitor developments related to U.S.-Canada trade relations and will provide updates as they become available. If you have questions about coverage, timing, or supply chain impacts, please contact your Husch Blackwell attorney.