On July 20, President Trump issued three separate proclamations invoking Section 338 of the Tariff Act of 1930 to impose an additional 50% ad valorem duty on certain products of Canada. The duties are scheduled to take effect at 12:01 a.m. ET on August 19, 2026.
The actions were announced in response to several Canadian trade measures:
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Dairy Products: A 50% additional duty will be imposed on certain Canadian imports in response to Canada's tariff-rate quota system for dairy products.
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Alcoholic Beverages: A separate 50% additional duty will apply to certain Canadian products in response to Canada's restrictions on the importation and sale of U.S. alcoholic beverages.
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Motor Vehicles: Another 50% additional duty will be imposed on certain Canadian imports in response to Canada's 25% tariff on U.S.-made motor vehicles that do not qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
Importers should review the applicable proclamations and accompanying annexes for the complete list of affected tariff provisions and HTS classifications:
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"Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy" (Annex I and Annex II)
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"Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages" (Annex I and Annex II)
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"Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles" (Annex I and Annex II)
Deringer will continue to monitor these developments and provide updates as they become available. For questions regarding the impact on your imports, please contact your Deringer representative.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.