WHAT’S THE LATEST
On July 20, 2026, the Administration issued three Presidential Proclamations imposing additional duties under Section 338 of the Tariff Act of 1930 on certain Canadian-origin products. The additional duties apply to covered merchandise entered for consumption, or withdrawn from warehouse for consumption, beginning August 19, 2026, at 12:01 a.m. ET.
WHAT WE KNOW
Covered products
Additional duties apply to certain Canadian products related to:
- Dairy products
- Alcoholic beverages
- Motor vehicles
These actions were in response to:
- Canada's dairy tariff-rate quotas (TRQs)
- Canada's prohibition on certain U.S. alcoholic beverages
- Canada's 25% tariff on non-USMCA-qualifying U.S. motor vehicles
Key considerations
- The proclamations do not provide exemptions for products that qualify under USMCA.
- This is the first time tariffs have been imposed under Section 338.
- The law does not provide a sunset provision or defined timeline for removal.
- These duties may apply in addition to other trade remedies and import charges, including Section 301 duties, Section 232 duties, AD/CVD duties, taxes, and fees, unless otherwise specified in the applicable proclamation.
SEKO'S GUIDANCE
SEKO recommends that importers:
- Review the applicable proclamations and annexes to determine if products are subject to the additional duties.
- Evaluate shipments scheduled to enter the United States on or after August 19, 2026.
- Work with suppliers to confirm product classifications and country of origin where appropriate.
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.
Presidential Proclamations and Annexes
Proclamation – Response to Canada's Dairy Tariff Rate Quotas (TRQs)
- Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy – The White House
- Annex I-1 – Dairy Products
Proclamation – Response to Canada's Prohibition on U.S. Alcoholic Beverages
- Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages – The White House
- Annex I-2 – Alcoholic Beverage Products
Proclamation – Response to Canada's 25% Tariffs on Certain Non-USMCA-Qualifying U.S. Motor Vehicles
