Important Update – August 20, 2026
The United States previously announced new tariffs affecting certain Canadian-origin products imported into the U.S., which were originally scheduled to take effect at 12:01 a.m. Eastern Time on August 19, 2026.
Implementation of the additional 50% ad valorem tariffs under Section 338 of the Tariff Act of 1930 has been temporarily paused. As a result, these additional tariffs did not take effect on August 19 as originally scheduled.
The pause was announced while the United States and Canada continue discussions. The implementation timeline remains subject to change based on further U.S. government announcements.
Customers should not rely on the previously announced August 19 effective date and should review current U.S. government guidance before shipping potentially affected products.
If implemented as announced, the additional tariff could apply to covered products even when they qualify under CUSMA/USMCA.
Which products could be affected?
The proposed 50% tariff does not apply to every product shipped from Canada. If implemented, it would apply to specific products identified by their U.S. Harmonized Tariff Schedule (HTSUS) classification.
The affected lists extend beyond the industries named in the U.S. actions and include other goods, such as hockey sticks and cement. Customers should confirm the correct U.S. HTSUS classification for their products and determine whether that classification is included in any of the applicable Section 338 lists.
Shipping from Canada does not necessarily mean a product is Canadian-origin. Country of origin is determined under U.S. customs rules and may differ from the country where the goods are stored, sold or shipped. Customers should confirm the origin of their goods when determining whether the Section 338 measures could apply.
Alcohol shipments are not permitted through the ShipTime platform. However, the U.S. Section 338 action concerning alcoholic beverages also contains some non-alcohol HTS classifications. Customers checking whether a product could be affected should therefore review all official Section 338 product lists, even though alcohol itself is not addressed as a shippable commodity in this article.
When will the Section 338 tariffs take effect?
The additional Section 338 tariffs were originally scheduled to take effect at 12:01 a.m. Eastern Time on August 19, 2026. However, implementation was temporarily paused before the tariffs took effect while the United States and Canada continue discussions.
The additional Section 338 tariffs therefore did not take effect on August 19 as originally announced.
Because the situation is developing, the implementation timeline remains subject to change. Customers should refer to current U.S. government guidance before shipping potentially affected products.
ShipTime will update this article as additional official information regarding implementation becomes available.
Does CUSMA/USMCA still matter?
Yes. If the Section 338 tariffs are implemented as announced, CUSMA/USMCA eligibility would not remove the additional 50% Section 338 tariff from a product covered by the measures.
Customers should continue to provide a valid CUSMA/USMCA certification for products that qualify, as preferential treatment may still be available for other eligible duties. Only products that meet the applicable CUSMA rules of origin should be certified.
CBP does not require a specific USMCA certificate form, but a certification used to claim preferential treatment must contain the required minimum data elements.
How would the new tariff be calculated?
If implemented as announced, the Section 338 tariff would be an additional 50% ad valorem duty, meaning it would be calculated as a percentage of the applicable customs value of the affected goods.
| Customs value | US$1,000 |
| Additional Section 338 tariff | 50% |
| Additional duty | US$500 |
Because the tariff is percentage-based, customers should ensure the customs value reported on the commercial invoice is accurate and supported by the transaction.
If implemented, the new tariff may be applied in addition to other applicable duties, taxes and fees, subject to the exclusions contained in the Section 338 measures.
Are there exclusions?
Yes. The U.S. government has identified exclusions including certain energy products, potash, fish and critical minerals, as well as products subject to Section 232 tariffs. Other exclusions or special treatment may apply depending on the product and its HTSUS classification.
Customers should review the applicable tariff classification and official U.S. guidance rather than assuming a product is either included or excluded.
Check your product’s U.S. HTS classification here:
https://hts.usitc.gov/
Who would pay the additional tariff?
If implemented, the tariff would be assessed as part of the U.S. import and customs-clearance process. From a shipping perspective, the courier or customs broker would generally seek payment from the party designated to pay duties and taxes on the shipment.
If the shipper is designated as the duty and tax payer, the charges may be billed to the shipper. If the recipient is designated as the duty and tax payer, the recipient may be required to pay the applicable charges as part of the import process.
Customers should confirm who is responsible for duties and taxes before shipping, particularly where the additional tariff could materially increase the landed cost of the goods if implemented.
The Importer of Record remains responsible to U.S. Customs and Border Protection for the accuracy of the customs entry and applicable duties.
What should I do before shipping to the U.S.?
1. Confirm the correct U.S. HTSUS classification.
2. Determine whether the product is included in any applicable Section 338 tariff list.
3. Confirm the product's country of origin.
4. Continue providing a valid CUSMA/USMCA certification when the product qualifies.
5. Confirm whether the shipper or recipient will pay duties and taxes.
6. Ensure the customs value and commercial invoice information are accurate.
7. Consider the potential landed cost if the additional Section 338 tariffs are implemented.
8. Review current U.S. government guidance before shipping potentially affected products, as the implementation timeline remains subject to change.
If you are uncertain about your product’s classification, country of origin, CUSMA eligibility or tariff treatment, please refer to the official U.S. government resources below for additional guidance and verification.
Official U.S. Government Resources
The following links are provided for customers who want to verify classifications, review the official Section 338 actions, or confirm U.S. customs requirements.
White House – Section 338 Tariffs on Canada
https://www.whitehouse.gov/fact-sheets/2026/07/fact-sheet-president-donald-j-trump-imposes-additional-tariffs-on-canada/
U.S. Trade Representative – Section 338 Announcement
https://ustr.gov/about/policy-offices/press-office/press-releases/2026/july/ambassador-greer-issues-statement-president-trump-imposing-section-338-tariffs-canada
U.S. International Trade Commission – Official HTS Search
https://hts.usitc.gov/
U.S. Customs and Border Protection – USMCA Information
https://www.cbp.gov/trade/priority-issues/trade-agreements/USMCA
CBP – USMCA Frequently Asked Questions
https://www.cbp.gov/trade/priority-issues/trade-agreements/free-trade-agreements/USMCA/FAQs
CBP – Certification of Origin Template
https://www.cbp.gov/document/guidance/certification-origin-template
CBP – Tips for New Importers and Exporters
https://www.cbp.gov/trade/basic-import-export/importer-exporter-tips
CBP – Commercial Invoice Value Guidance
https://www.help.cbp.gov/s/article/Article-1162?language=en_US
CBP – Importing into the United States: A Guide for Commercial Importers
https://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf
Official Section 338 Actions and Product Lists
Alcoholic Beverages Action
https://www.whitehouse.gov/presidential-actions/2026/07/imposing-additional-duties-to-offset-canadian-discrimination-against-the-commerce-of-the-united-states-with-respect-to-alcoholic-beverages/
Alcohol itself is not permitted through the ShipTime platform. This official action is included because its affected-product annex also contains some non-alcohol HTS classifications.
Important: U.S. tariff measures and implementation timelines may change with little notice. The Section 338 tariffs described above are currently paused and did not take effect on August 19, 2026, as originally announced. Customers shipping potentially affected products should review current U.S. government information before shipping. ShipTime will update this article as additional official information becomes available.