President Trump signed five proclamations under Section 338 of the Tariff Act of 1930 on September 8, escalating the Administration’s response to what it describes as continued Canadian discrimination against U.S. exports of motor vehicles, dairy, and alcoholic beverages. (Fact Sheet) Three of the proclamations exclude certain Canadian products from importation into the United States outright, effective 12:01 a.m. ET on September 8, 2026. The remaining two modify the scope of products subject to the existing 50 percent tariff, effective 12:01 a.m. ET on September 15, 2026. Recall that earlier on the 9th, Canada’s retaliatory tariffs on U.S. exports went into effect. Please note that several HTS paper codes were added to the Motor Vehicle Scope Modifications Annex including: 4802.61.10 (writing and cover paper in rolls). Newsprint remains exempt.
Section 338 authorizes the President to exclude articles of a foreign country from importation where that country maintains or increases discrimination against U.S. commerce, and the President deems exclusion consistent with the public interest and the interests of the United States. These actions are the first use of that exclusion authority in this dispute. Section 338 tariffs now apply regardless of USMCA origin and stack on top of Section 232 tariffs.
Scope Modifications (effective September 15)
- Motor Vehicles: A proclamation adding certain Canadian products to the 50 percent duty imposed under Proclamation 11048 (Annex I, Part A) and removing others from it (Annex I, Part B), with conforming HTSUS changes in Annex II.
The News/Media Alliance will continue to monitor and provide updates as additional details are provided.
