President Trump Sets 50% Tariff Under Section 338 on Certain Canadian Products via Three Separate Proclamations
President Trump today, July 20, said in a proclamation that his administration under Section 338 of the 1930 Trade Act will impose an additional ad valorem duty of 50% on certain products of Canada, effective 12:01 a.m. ET on Aug. 19, in response to Canada’s tariff rate quotas for dairy products.
In another proclamation utilizing Section 338 announced today, July 20, the president called for additional ad valorem duty of 50% on certain Canadian products, effective as of 12:01 a.m. ET on Aug. 19, in response to Canada’s prohibition on imports and sales of U.S. alcoholic beverages.
In a third proclamation from the White House today, July 20, will apply Section 338 tariffs of 50% on certain Canadian products, effective 12:01 a.m. ET on Aug. 19, in response to Canada’s 25% on imports of U.S. motor vehicles that do not qualify for preferential, duty-free treatment under the United States-Mexico-Canada Agreement (USMCA).
See impacted Canadian product imports and HTS numbers: Proclamation, “IMPOSING ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO DAIRY,” Annex 1 and Annex II; Proclamation, “IMPOSING ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO ALCOHOLIC BEVERAGES,” Annex I and Annex II; and Proclamation, “IMPOSING ADDITIONAL DUTIES TO OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH RESPECT TO MOTOR VEHICLES,” Annex 1 and Annex II.
As reported by International Trade Today (ITT), this is the first time tariffs have been imposed under Section 338. “There is no time limit for these tariffs in the law, and no language in the law about when they should be removed,” ITT said.
Meanwhile, the NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg, P.A., will monitor this presidential action and provide relevant updates from the Commerce Department, USTR, and Customs and Border Protection (CBP) to our members as soon as available.