On September 8, 2026, President Trump issued five Presidential Proclamations under Section 338, further modifying the treatment of certain Canadian products. The actions include three new import bans covering specified Canadian alcoholic beverages, dairy products, and certain motorcycles, as well as modifications to products subject to the existing 50% Section 338 additional duty. The new import bans will take effect at 12:01 a.m. EST on September 29, 2026, while the changes to the scope of the 50% Section 338 tariffs will take effect earlier, at 12:01 a.m. EST on September 15, 2026.
The actions follow Canada’s implementation of additional tariffs on U.S. products on September 8. The September 8 actions modify the Section 338 measures that became effective August 22, 2026, following the expiration of the temporary three-day suspension announced in August.
Section 338 Tariff Changes Effective September 15
Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after September 15, 2026, the scope of the 50% Section 338 additional duty on Canadian products will be revised. Certain products will be added to the 50% tariff, while others will be removed from coverage. The newly covered products include various paper products of Chapter 48; certain iron, steel and aluminum products of Chapters 73 and 76; base-metal products of Chapter 83; furniture and other products of Chapter 94; and certain cheeses and cheese substitutes. Additional products added under the alcoholic beverage-related proclamation include certain dairy products, hides, skins and leather, golf carts and all-terrain vehicles, motorboats, and other products.
At the same time, several products will be removed from the 50% Section 338 tariff. These include certain salt and cement products, toilet paper and tissues, bed sheets, lead, fishing rods, and other products. Under the alcoholic beverage-related modification, certain whisky and liqueurs in containers holding more than four liters will also be removed from the Section 338 tariff coverage.
The White House has reiterated that the 50% Section 338 tariffs apply regardless of whether the goods qualify as originating under USMCA.
An important change to note is that, initially, the Section 338 duties did not apply to goods that were subject to Section 232 duties. Under the updated proclamations, this exclusion has been removed for affected Canadian products. As a result, effective September 15, 2026, where both provisions apply, the goods will be subject to both Section 232 and Section 338 duties, in addition to any applicable standard duties, taxes, and fees.
New Import Bans Effective September 29
Separate proclamations will prohibit the importation of certain Canadian products beginning September 29, 2026. The alcoholic beverage proclamation covers specified Canadian beer, wine, cider, spirits and other alcoholic beverages classified under 53 HTS subheadings in Chapter 22. The specific products and HTS provisions are identified in the proclamation’s Annex.
For dairy, the new import prohibition applies to specified Canadian products currently subject to the Section 338 measures, including products classified under heading 0404, as well as certain molasses and non-alcoholic beer.
For motor vehicles, the new import prohibition applies to Canadian motorcycles and cycles fitted with a reciprocating internal-combustion piston engine having a cylinder capacity over 800 cc, classified under HTSUS 8711.50.00.
The proclamations provide that products subject to the new import bans that were imported into the United States before September 29,2026, but had not yet been entered for consumption or withdrawn from warehouse for consumption will remain subject to the applicable 50% Section 338 duty rather than the import prohibition.
The proclamations also provide that if any of the import bans are invalidated, the products covered by the bans would instead become subject to the applicable 50% Section 338 tariff treatment.
Importers of Canadian-origin merchandise should review their current HTS classifications and Section 338 treatment in advance of both effective dates. The September 15 changes may result in products becoming newly subject to the 50% additional duty, while other products will be removed from the Section 338 tariff. Beginning September 29, certain products will no longer be eligible for importation into the United States at all.
Importers should review the Annexes to each proclamation for the specific HTS provisions affected. The September 8 proclamations authorize CBP to issue additional implementation guidance and make modifications as necessary.
The five Presidential Proclamations and their respective Annexes are linked below for reference:
