Section 338: 50% on Annexed Canadian Goods From August 19, 2026

Three separate presidential proclamations, all signed July 20 and published July 23, 2026, will each impose an additional 50 percent ad valorem duty on its own annexed list of Canadian goods under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338). Proclamation 11046 (91 FR 46639, FR Doc. 2026-14991, HTSUS heading 9903.03.12) annexes alcoholic beverages; Proclamation 11047 (91 FR 46653, FR Doc. 2026-14992, heading 9903.03.13) annexes dairy; and Proclamation 11048 (91 FR 46663, FR Doc. 2026-14997, heading 9903.03.14) annexes a broad basket of Canadian goods spread thinly across roughly 60 HTS chapters. Each answers a different Canadian trade practice, and none of the three reaches goods already subject to Section 232 duties — clause 2 of every proclamation excludes them by name. The duties apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 19, 2026; goods entered before that moment are not subject to them.

Wine and spirits is the only product category this site prices under Section 338 — HTS chapters 2203 through 2208, annexed by Proclamation 11046. Dairy is in scope under Proclamation 11047, but this site carries no dairy category and does not price it. Motor vehicles and their parts are carved out by law, not merely omitted here: HTSUS U.S. note 51(c) lists passenger vehicles, light trucks, medium- and heavy-duty vehicles, buses and all of their parts as "No change", and the Proclamation 11048 annex contains no HTS 8703 or 8708 line at all — a Canadian vehicle or vehicle part will pay its Section 232 duty and no Section 338 duty. The most important consequence for Canadian sourcing is that a USMCA preference claim does not defeat this duty. HTSUS U.S. note 51(a) subjects goods eligible for special tariff treatment under general note 3(c)(i) — which is how a USMCA claim enters — to the additional rate regardless, and the Rates of Duty 1-Special subcolumn reads "The duty provided in the applicable subheading + 50%", identical to 1-General. A USMCA-qualifying Canadian good in scope will keep its 0 percent preferential underlying duty and still owe 50 percent.

Section 338: 50% on Annexed Canadian Goods From August 19, 2026 (effective 2026-08-19). Three separate presidential proclamations, all signed July 20 and published July 23, 2026, will each impose an additional 50 percent ad valorem duty on its own annexed list of Canadian goods under Section 338 of the Tariff Act of 1930 (19 U. Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) lets the President impose additional duties on the goods of a country that discriminates against United States commerce. It had gone unused for decades before three proclamations, all signed July 20 and published July 23, 2026, each applied it to a separate annex of Canadian goods: Proclamation 11046 covering alcoholic beverages, 11047 covering dairy, and 11048 covering a broad basket spread thinly across roughly 60 HTS chapters. Each imposes an additional 50 percent ad valorem duty on the goods in its own annex. The duties apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 19, 2026; goods entered before that moment are not subject to them. The reach is narrow in two directions: it is Canada-only, and within Canada it touches only annexed goods. Articles already subject to Section 232 duties are excluded entirely, stated by name in clause 2 of all three proclamations. Passenger vehicles, light trucks, medium- and heavy-duty vehicles, buses and all of their parts are carved out by law under HTSUS U.S. note 51(c), so a Canadian vehicle or vehicle part pays its Section 232 duty and no Section 338 duty. The consequence that matters most for Canadian sourcing is that a USMCA preference claim does not defeat this duty. HTSUS U.S. note 51(a) subjects goods eligible for special tariff treatment under general note 3(c)(i) — the route a USMCA claim takes — to the additional rate regardless, and the Rates of Duty 1-Special subcolumn reads "The duty provided in the applicable subheading + 50%", identical to 1-General. A USMCA-qualifying Canadian good in scope keeps its 0 percent preferential underlying duty and still owes the additional 50 percent. Wine and spirits, HTS chapters 2203 through 2208, is the only product category this site prices under Section 338. Importers of annexed Canadian goods should confirm their HTS line against the proclamation annexes and check whether the good is already subject to Section 232, which removes it from Section 338 entirely.

Canadian sourcing is the only exposure here: Section 338 reaches annexed Canadian goods and nothing else. The practical checks are (1) whether your HTS line appears in one of the three proclamation annexes — for this site's categories that means wine and spirits, HTS chapters 2203 through 2208 — (2) whether the good is already subject to Section 232 duties, which excludes it entirely under clause 2 of every proclamation, and (3) whether you have been budgeting on a USMCA claim, because this is the one authority a USMCA preference claim does not defeat: a qualifying good keeps its 0 percent preferential underlying duty and still owes the additional 50 percent. Canadian passenger vehicles, light trucks and their parts are carved out by law under HTSUS U.S. note 51(c) and owe no Section 338 duty at all.

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