U.S.-Canada Tariff Update: New Import Restrictions and Canadian Counter-Tariffs

On September 8, President Trump announced new changes affecting certain Canadian imports under Section 338. Effective at 12:01 a.m. ET on September 29, certain Canadian motor vehicles, dairy products, and alcoholic beverages will be excluded from entering the United States under the new proclamations.

Additional modifications to existing Section 338 tariffs on Canadian goods, including certain motor vehicles and alcoholic beverages, take effect at 12:01 a.m ET on September 15. The administration also revised the list of covered products by removing items such as rock salt and cement and adding products ranging from ATVs to additional dairy products.

The Section 338 tariffs apply to covered goods regardless of USMCA eligibility and are in addition to applicable Section 232 tariffs. Importers and customs brokers should review the specific proclamations and HTS annexes to determine whether their products are affected.

Canada has responded with counter-tariffs of up to 50% on approximately $27.6 billion in U.S. goods, targeting sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.