New 50% U.S. Tariffs on Canadian Goods Begin Wednesday, August 19 - What specific changes to your listings/shipping policies will you make to deal with this and avoid refused packages?
*I mean to hopefully avoid refused packages...
New 50% U.S. Tariffs on Canadian Goods Begin Wednesday, August 19
New Section 338 tariffs take effect at 12:01 a.m. ET on Wednesday, August 19, 2026.
Three presidential proclamations issued July 20 are behind this change, each invoking Section 338 of the Tariff Act of 1930 to apply an additional 50% ad valorem duty on specified products of Canada. Each is presented as a response to Canadian trade practices in a specific sector — dairy, alcoholic beverages, or motor vehicles — but the actual list of affected goods reaches far beyond those three categories, extending into wood products, plastics, paper and packaging, furniture, apparel, electronics, sporting goods, and cosmetics.
What to keep in mind before August 19
CUSMA/USMCA does not exempt covered goods. The additional duty applies whether or not the goods qualify under CUSMA. Goods currently entering duty-free on a valid CUSMA claim will still owe the extra 50%. A valid CUSMA claim (or TPL for certain apparel products) is still required to avoid the regular duty.
The duty stacks. The new rate applies on top of the duty already owed under the regular HTS subheading, along with any other applicable duties, taxes, and fees.
Exclusions are narrow. Energy products, potash, fish, and critical minerals are excluded, as are articles already subject to Section 232 duties, such as steel, aluminum, copper, automobiles and parts, and lumber, which continue to pay their existing Section 232 rates instead.