Section 338 tariffs on Canadian imports paused until Aug. 22

Following an agreement between the U.S. and Canada Aug. 18, the U.S. has paused the implementation of tariffs on certain goods from Canada for three days, delaying the effective date to Aug. 22.

The 50% tariffs were set to take effect Aug. 19 pursuant to Section 338 of the Tariff Act of 1930. They were announced in July by U.S. President Donald Trump in three Section 338 actions for motor vehicles, alcoholic beverages and dairy.

The tariffs apply to goods regardless of whether they originate under the U.S.-Mexico-Canada Agreement. They do not apply to goods subject to Section 232 tariffs and some other goods.

Affected goods

Several textiles and textile-containing articles are subject to the 50% tariff under the Section 338 action on motor vehicles.

These include goods such as athletic and sports articles and equipment; parts of furniture; trunks, suitcases and bags; articles of apparel and clothing accessories; articles of leather, woven fabrics; yarn; various nonwovens; twine, cordage, rope and cables; carpets and other textile floor coverings; narrow woven fabrics; and others.

A full list of the goods subject to the 50% tariff under the action on motor vehicles can be found here.

A full list of the goods subject to the 50% tariff under the action on alcoholic beverages can be found here.

A full list of goods subject to the 50% tariff under the action on dairy can be found here.