U.S. Pauses Section 338 Tariffs on Certain Canadian Products Until August 22

President Trump has announced a three-day delay in the implementation of additional 50% Section 338 duties on certain Canadian products, as the United States and Canada continue trade negotiations.

The additional duties were originally scheduled to take effect at 12:01 a.m. Eastern Time on August 19, 2026. Under the latest presidential action, the effective date has been moved to 12:01 a.m. Eastern Time on August 22, 2026.

Background

On July 20, 2026, the United States issued three separate proclamations imposing additional 50% ad valorem duties under Section 338 of the Tariff Act of 1930 on certain Canadian products in response to Canadian trade measures involving:

The measures apply to specified Canadian products identified by Harmonized Tariff Schedule of the United States (HTSUS) classifications in the annexes to the three proclamations.

What Has Changed?

On August 18, President Trump determined that the public interest requires temporarily suspending the additional duties while discussions between the United States and Canada continue.

Accordingly, the effective date contained in Proclamations 11046, 11047, and 11048 has been amended from August 19 to August 22, 2026.

This means the additional Section 338 duties covered by these proclamations are not currently in effect. Unless further presidential action is taken, they are scheduled to begin at 12:01 a.m. ET on August 22.

The presidential action also provides that any duties collected that should not have been assessed as a result of the postponement will be refunded in accordance with applicable law and U.S. Customs and Border Protection (CBP) procedures.

What Importers Should Consider

Importers with Canadian-origin products potentially covered by the Section 338 measures should:

Buckland’s Recommendation

The three-day postponement provides a limited window while U.S.-Canada negotiations continue. Buckland recommends that affected importers use this time to review their tariff classifications, evaluate potential duty exposure, and assess the timing of upcoming Canadian-origin shipments.

Buckland will continue monitoring developments related to these Section 338 measures and will provide additional updates as new information becomes available.

For questions regarding how these measures may affect your imports, please contact your Buckland representative.

Source:
TEMPORARY SUSPENSION OF ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO ALCOHOLIC BEVERAGES, DAIRY, AND MOTOR VEHICLES