The U.S. has escalated its Section 338 actions against Canada, moving from a 50% tariff on certain dairy, alcoholic beverage, and motor vehicle imports to outright import bans on those goods, effective September 29, 2026, with no USMCA exemption. Separate proclamations also revised the tariff's product scope effective September 15, 2026, adding 122 HTSUS classifications and removing others, including rock salt and cement, and narrowing the 0% duty carve-out to a single HTSUS heading (CBP Guidance Available), following Canada's imposition of roughly $20 billion in new retaliatory tariffs on U.S. exports.

A new 50% Section 338 tariff takes effect August 22, 2026 (paused from August 19), calculated by the date goods arrive and enter the U.S., not the date they ship from Canada. This update details the actions exporters should take now, including confirming arrival timing with their carrier and broker, moving eligible shipments before the deadline, and holding others where entry timing is uncertain.