On July 20, President Trump issued three separate proclamations invoking Section 338 of the Tariff Act of 1930 to impose an additional 50% ad valorem duty on certain products of Canada. The duties are scheduled to take effect at 12:01 a.m. ET on August 19, 2026.
The actions were announced in response to several Canadian trade measures:
- Dairy Products: A 50% additional duty will be imposed on certain Canadian imports in response to Canada’s tariff-rate quota system for dairy products.
- Alcoholic Beverages: A separate 50% additional duty will apply to certain Canadian products in response to Canada’s restrictions on the importation and sale of U.S. alcoholic beverages.
- Motor Vehicles: Another 50% additional duty will be imposed on certain Canadian imports in response to Canada’s 25% tariff on U.S.-made motor vehicles that do not qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
Importers should review the applicable proclamations and accompanying annexes for the complete list of affected tariff provisions and HTS classifications:
- “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy” (Annex I and Annex II)
- “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages” (Annex I and Annex II)
- “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles” (Annex I and Annex II)
Deringer will continue to monitor these developments and provide updates as they become available. For questions regarding the impact on your imports, please contact your Deringer representative.
