Section 338 Updates

On September 8, 2026, President Trump signed five proclamations under Section 338 in response to Canada’s additional retaliatory surtax on certain U.S. exports. The measures include three import bans covering specified Canadian-origin alcoholic beverages, dairy-related products, and motor vehicle products, as well as two proclamations modifying the scope of existing 50% Section 338 duties on certain Canadian goods. The proclamations state that the actions apply regardless of whether covered goods qualify for USMCA and stack with any applicable Section 232 duties.

The import bans cover certain high-volume imports such as beer, wine, certain spirits, whey products, molasses, and certain types of motorcycles. The tariff modifications add and remove products from the existing 50% duty lists; added products include certain cheeses, furskins, motorboats, paper products, certain aluminum products, furniture, mattresses, lamps, golf carts, small-engine passenger vehicles, and certain all-terrain vehicles. The tariff-list changes take effect on September 15, 2026, while the import bans take effect on September 29, 2026.

Items removed from the tariffs include salt, toilet and facial tissue, lead, and chemically pure sugars.

If you have questions about tariffs or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com.

References to Annexes from these orders are listed below:

https://www.whitehouse.gov/wp-content/uploads/2026/09/ANNEX-I-AUTO.pdf

https://www.whitehouse.gov/wp-content/uploads/2026/09/ANNEX-I-ALCOHOL.pdf

https://www.whitehouse.gov/wp-content/uploads/2026/09/ANNEX-I-MOTOR-VEHICLES.pdf

https://www.whitehouse.gov/wp-content/uploads/2026/09/ANNEX-I-DAIRY.pdf

https://www.whitehouse.gov/wp-content/uploads/2026/09/Alcohol-Scope-Modification-Annex-I.pdf