WHAT’S THE LATEST

Update as of August 25: The Executive Office of the President temporarily suspended the additional Section 338 duties on certain Canadian-origin products that were scheduled to take effect August 19, 2026. The duties now apply to covered Canadian merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT on August 22, 2026.

U.S. Customs and Border Protection (CBP) has also issued implementation guidance under CSMS #69606660 (August 21) covering applicable classifications, reporting requirements and entry procedures.

WHAT WE KNOW

Applicable HTS headings and duty rates

The complete list of Chapter 1–97 classifications within scope of the 50% tariff, and their corresponding Chapter 99 headings, is set out in this CSMS attachment: Section 338 Canada HTS List (PDF). 

Qualifying for USMCA preference does not exempt in-scope products.

Interaction with other duties

Covered products remain subject to all otherwise-applicable AD/CVD duties, other trade-remedy duties, taxes, fees and charges, in addition to the Section 338 rate.

Chapter 98

Goods properly entered under Chapter 98 are generally excepted, except for subchapter XXIII and subheadings 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80. 

  • For 9802.00.40, .50 and .60, the additional duty applies to the value of the repairs, alterations or processing performed abroad.
  • For 9802.00.80, the additional duty applies to the value of the article assembled abroad, less the value of U.S.-origin components.
Foreign Trade Zones

Covered merchandise admitted to an FTZ must be admitted under privileged foreign status, unless eligible for domestic status, fixing duty treatment as of admission.

Drawback

The additional duties are eligible for drawback.

SEKO'S GUIDANCE

SEKO recommends that importers:

  1. Reconfirm whether products fall within scope using the CSMS-attached HTS list linked above.
  2. Re-evaluate entries filed or planned around the August 19–22 window.
  3. Assess duty mitigation and planning strategies where applicable.

For Section 338 entry-filing questions, CBP directs filers to its Trade Remedy Branch at TradeRemedy@cbp.dhs.gov.

SEKO continues to monitor developments and will provide updates as additional guidance becomes available. If you have questions or need assistance determining the impact of these measures, please reach out to your SEKO representative or email us at hello@sekologistics.com.