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The Bottom Line
We covered Canada's 50% Section 338 duties when they took effect in August, followed by Canada's counter-tariffs in early September. Five more proclamations followed on September 8 and were published in the Federal Register on September 14. As of September 15 the 50% duty covers more Canadian products and stacks on top of Section 232. The President has also announced a proposed import ban on certain Canadian alcohol, dairy, and motorcycles starting September 29.
Section 338
If you import Canadian-origin goods, the Section 338 rules are changing in two stages this month. We covered the 50% duties when they took effect in August, then Canada's counter-tariffs when they followed on September 8. On September 8, the President signed five more proclamations, published in the Federal Register on September 14. Two change the 50% duty's product list, while three would bar certain Canadian goods from import starting September 29.
The first change took effect September 15. The 50% duty now covers more Canadian products and applies on top of Section 232 duties. Canadian steel, aluminum, and copper that previously had a 0% Section 338 rate now face the additional duty unless they fall under heading 9903.03.13. The list covers more than alcohol and vehicles, so check the full 10-digit HTS classification to determine the rate.
The second change is set for September 29 and hasn't taken effect yet. Packaged Canadian alcohol, certain whey and other dairy products, molasses, and motorcycles over 800cc would be barred from entry. Goods that arrive before September 29 but haven't been entered would stay at the 50% duty. USMCA origin doesn't change that. The statute also allows for forfeiture, so if the ban takes effect, a covered shipment arriving after the deadline could be seized. The August duties were pushed back for three days at the last minute while talks continued, so the September 29 date could change too.
Section 338 sat unused for 96 years. July's proclamations were the first duties imposed under it, and the September 29 ban would be the first import exclusion. The International Trade Commission only started taking public input on September 4 and says it has no established process yet. Comments are open through November 9. No importer has filed suit so far, and the proclamations say the 50% duty would apply again if a ban is struck down. A lot of this is being worked out for the first time.
The rules for Canadian imports are changing quickly under a law no president had used before July. Steel and aluminum imports may now face Section 338 duties on top of Section 232, while certain alcohol, dairy, and motorcycle products are set to be barred from entry on September 29. The ban is not in effect yet and could still change. The legal basis for these actions is largely untested.
Sources: Federal Register: scope change, import ban, CBP guidance, ITC Section 338(g) comment request
Tin mill products from China. Commerce issued a preliminary affirmative countervailing duty determination on tin mill products from China, along with a preliminary finding of critical circumstances. That finding could bring earlier entries into the scope of the duties. Preliminary cash deposit requirements apply to entries made on or after September 15. (Federal Register)
Foreign trade barriers: 2027 review. USTR is collecting comments for its 2027 National Trade Estimate, the annual report on foreign barriers affecting U.S. exports. Exporters can submit information about foreign government restrictions through October 29. (Federal Register)
What We're Watching
Section 338 in court. No one has challenged the Section 338 duties in court yet, and the fact-finding process is just getting started. If the import ban takes effect, we could see more challenges from importers. The proclamations already spell out what happens if a court strikes down a ban. We're watching the September 29 date, the Court of International Trade docket, and CBP's filing guidance.
Screen Your Canadian-Origin Entries
Pull every Canadian-origin line and check the full 10-digit HTS against both lists. Flag products that now carry the 50% duty and those that also owe Section 232.
Reprice Canadian Steel, Aluminum, and Copper
These products lose the 0% Section 338 rate unless they fall under heading 9903.03.13. Update landed costs to account for both Section 338 and Section 232.
Confirm Your Form 5106 Before September 18
Check your Form 5106 data before the deadline. A voided importer-of-record number can't be used to file an entry or warehouse withdrawal, which could hold up Canadian goods ahead of the announced September 29 ban.
Reach Out to Caspian to Understand Your Impact
Bill of Lading + Container Details
See the bill of lading and container details right from each entry. Caspian now pulls the ACE Entry Bill of Lading report, so those details sit alongside invoices and other entry documents.
Importer-of-Record Numbers
IOR numbers now live in Caspian. Add them once for each company, and Caspian automatically carries the right IOR number onto each entry your team files.
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