WhyItLands Where it lands, and why.
Regulatory Radar · United States · Trade and tariffs

US 50% Section 338 duty and import bans hit Canadian goods

In force · updated 20 October 2026 · reviewed 23 October 2026 · North America

Under Section 338 of the Tariff Act of 1930, a 50% duty has applied since 22 August 2026 to about $20 billion of Canadian goods across 554 tariff lines, including alcohol, dairy, maple syrup, plywood and ice hockey equipment, with no exemption for USMCA-qualifying goods. Proclamations signed on 8 September widened the duty list from 15 September (adding items such as cheese, furniture and lighting) and banned imports of certain Canadian alcohol, dairy products and motorcycles over 800 cc from 29 September. On 20 October an importer of Canadian cheese, backed by the Liberty Justice Center, sued at the Court of International Trade, arguing that Section 338 does not cover the cited Canadian policies and seeking refunds with interest. Prime Minister Carney spoke with President Trump on 21 October, and Canadian officials told Canadian press a quick deal before the November midterms is possible but not expected.

For a parcel A Canadian parcel of maple syrup, cheese or hockey gear to an American buyer pays 50% on top of clearance costs, and some alcohol and dairy can no longer be shipped at all.

Key dates

  • Done22 Aug 2026

    50% Section 338 duty takes effect on 554 tariff lines of Canadian goods Davis Wright Tremaine

  • Done15 Sep 2026

    Widened duty lists take effect Troutman Pepper Locke

  • Done29 Sep 2026

    Import bans on certain Canadian alcoholic beverages, dairy products and motorcycles over 800 cc take effect Troutman Pepper Locke

  • Done20 Oct 2026

    Importer Gellert Global Group sues at the US Court of International Trade to challenge the Section 338 tariffs; no hearing date reported Al Jazeera

Add this rule's dates to your calendar

Every date of this rule, with what it means for a parcel and what to prepare. If a date moves, your calendar moves with it.

Free, no sign-up, nothing tracked. One link can be shared with your compliance, operations and commercial teams so everyone works from the same dates. Information, not legal advice.

Check which other rules apply to your route →

Who it hits

Canadian online sellersCanada Post and couriers on the Canada-US laneUS importers

What to prepare

  • Screen Canada-to-US parcels against the Section 338 lists and the banned categories before induction
  • Advise Canadian shippers to move affected categories into US warehouse stock or to non-US markets
  • Watch for further proclamations, which have come at two- to three-week intervals

Our reading

The move from duties to bans shows the instrument can escalate quickly and without USMCA protection, so the Canada-US e-commerce lane should be priced with short tenors. Small Canadian exporters are the most exposed.
USMCA leash

Sources

  1. Fifty Percent Section 338 Tariffs on Many Canadian Goods Effective August 22 · Davis Wright Tremaine · 2026-08-27
  2. From Duties to Import Bans: President Trump Escalates Section 338 Actions Against Canadian Goods · Troutman Pepper Locke · 2026-09
  3. US food importer sues Trump over 50 percent tariffs on Canadian goods · Al Jazeera · 2026-10-20
  4. EXCLUSIVE: Canada hasn't yet closed door on U.S. trade deal ahead of midterms · BNN Bloomberg (CTV News) · 2026-10-22

Information, not legal advice. Dates come from official texts or quality legal and trade press, and slip often: always check the current text before acting. Back to the full radar.

Regulatory Radar