Canada: 50% Section 338 Tariffs Signed, Effective August 19
Three presidential proclamations under Section 338 of the Tariff Act of 1930 — a near-century-old statute — target Canadian motor vehicles, wine/beer, dairy, hockey sticks, cement, furniture, and refrigeration machinery with 50% tariffs effective August 19. Critically, these tariffs are NOT blocked by USMCA qualification, unlike USMCA-compliant goods that were exempt from Section 122. Canadian 25%
BY FRONTIER DESK · JULY 23, 2026 · 1 MIN READ
Three presidential proclamations under Section 338 of the Tariff Act of 1930 — a near-century-old statute — target Canadian motor vehicles, wine/beer, dairy, hockey sticks, cement, furniture, and refrigeration machinery with 50% tariffs effective August 19. Critically, these tariffs are NOT blocked by USMCA qualification, unlike USMCA-compliant goods that were exempt from Section 122. Canadian 25% counter-tariffs on US steel, aluminum, and vehicles remain in place. Legal challenge is possible — Section 338 has rarely been used and its scope is legally untested in this context. For firms advising US-Canada cross-border supply chains, the August 19 effective date requires urgent contract and pricing review; the USMCA exemption carve-out removal is the single most disruptive element for clients who had relied on USMCA compliance as tariff protection.