White House Delays Section 338 Tariffs on Canada

Aug. 19, 2026
By: Austin J. Eighan

On August 18, President Trump delayed imposing the 50% Section 338 tariffs on certain Canadian products that he announced in July in response to alleged Canadian discrimination against U.S. commerce. Just hours before the tariffs would have taken effect, President Trump moved the effective date from August 19 to August 22, giving the United States and Canada three additional days to finalize ongoing negotiations.

The July proclamations targeted Canadian measures affecting U.S. commerce in the automotive, alcohol, and dairy sectors. President Trump invoked Section 338 of the Tariff Act of 1930 (19 U.S.C. § 1338), which allows the President to impose additional duties of up to 50% when a foreign country discriminates against U.S. commerce or imposes an unreasonable or unequal burden on U.S. goods. The August 18 proclamation states that Canada has committed to removing the measures at issue and that the public interest therefore favors delaying the tariffs while negotiations continue. In a social media post referencing the delay, President Trump signaled that a potential deal between the countries could focus on further construction of the Keystone XL Pipeline.

While the latest proclamation does not change the scope of the Section 338 tariffs or their 50% rate, it directs U.S. Customs and Border Protection to suspend duty collection as necessary to implement the three-day delay. If your company would like support in assessing whether your products are covered by the proclamations or how to mitigate associated increases in duty liability, please reach out to one of our attorneys at Barnes, Richardson & Colburn.