Updated August 21, 2026
If your business has goods about to ship from Canada to the US, today is a day to pay close attention.
After a three-day delay to allow Canada and the US to continue negotiating, the additional 50% tariff under Section 338 of the U.S. Tariff Act of 1930 is now scheduled to take effect at:
12:01 AM ET on August 22, 2026
This means businesses with goods on their way to the US shouldn’t only look at the date the goods leave Canada.
The more important question is:
When will the goods be entered into the US?
The 30-second summary
If you don’t have time to read the whole article, here are 5 things to remember:
- The US is set to add a 50% tariff on certain Canadian goods under Section 338.
- About 554 tariff lines fall within the scope of this measure, worth roughly USD 20 billion of Canadian goods a year.
- The new expected start time is 12:01 AM ET on August 22, 2026, after being pushed back from August 19.
- CUSMA does not automatically exempt goods on the list from the Section 338 tariff.
- If you have goods about to ship to the US, confirm arrival and entry timing with your carrier or broker today.
What is Section 338, and why does it matter this time?
Section 338 is a provision of the Tariff Act of 1930 that lets the US President impose additional duties on goods from a country if the US government finds that the country is discriminating against or disadvantaging US commerce.
On July 20, 2026, President Donald Trump used Section 338 to impose additional duties of up to 50% on certain Canadian goods.
This is especially notable because Section 338 has almost never been used in modern trade practice.
The measures fall into three main groups:
Motor vehicles and other listed goods
This is the largest group, with about 439 tariff lines.
The name includes “motor vehicles”, which can be misleading, because the list isn’t limited to vehicles.
The expanded list also covers many industrial and consumer products, such as:
- Electronics and telecommunications equipment
- Furniture and household goods
- Building materials
- Plastics and packaging
- Clothing, footwear and luggage
- Toys and sporting goods
- Machinery and manufacturing inputs
- Cosmetics and perfume
- Some agricultural products
Dairy
About 52 tariff lines relate to dairy products.
Alcoholic beverages
About 63 tariff lines relate to alcoholic beverages.
In total, these three groups cover about 554 tariff lines.
The most important point: the ship date isn’t everything
This is probably the part businesses most need to pay attention to.
Suppose:
- The goods leave Canada on August 21
- They are in transit on August 21–22
- They are entered into the US after 12:01 AM ET on August 22
If the goods are on the Section 338 list, leaving Canada before the deadline does not automatically exempt them from the new tariff.
The current rules apply the duty to goods entered for consumption, or withdrawn from warehouse for consumption, from the effective time.
Put simply:
Don’t just ask: “Have my goods shipped?”
Also ask: “When will my goods be entered into the US?”
That’s why carriers, customs brokers and importers need to work closely together right now.
What about CUSMA?
This is one of the most commonly misunderstood points.
Normally, goods that meet CUSMA requirements can receive preferential tariff treatment.
With Section 338, it’s a different story.
This additional duty applies even to CUSMA-qualifying goods if they fall within the scope of Section 338.
CUSMA compliance does not mean automatic exemption from the Section 338 tariff.
So businesses shouldn’t rely only on the fact that:
“My goods qualify under CUSMA.”
to conclude that they won’t be affected.
What should businesses do today?
If you have goods about to ship to the US, now is the time to check 4 things.
1. Check your goods
Identify exactly:
- What is the product?
- What is its HTSUS code?
- Is it on the Section 338 list?
- Is it already subject to another tariff?
Don’t rely only on the product name, because some groups on the list are quite broad.
2. Confirm arrival and entry timing
Don’t just check when the goods leave Canada.
Contact your:
Carrier + customs broker + importer
to confirm:
- The estimated arrival
- When the entry will be filed
- Whether the goods can clear before the deadline
- Whether there is a risk of delay
This information is key to deciding whether to speed up a shipment.
3. Check your documents
Make sure the following are prepared accurately:
- Product description
- HS/HTSUS classification
- Country of origin
- Commercial invoice
- Customs documentation
A declaration error can complicate clearance, especially while a new policy is being rolled out.
4. Don’t rush every shipment just because of the deadline
Shipping earlier isn’t always the best choice.
If you aren’t sure the goods can be entered before the deadline, talk to your carrier and broker before deciding.
The goal isn’t:
“Ship as fast as possible.”
The goal is:
Understand the timing → understand your tariff exposure → then decide.
How can Soleil Transportation help?
This is when a carrier needs to do more than “pick up and deliver”.
When policy changes quickly, customers need a partner who can help them see the whole journey of their shipment more clearly.
For Canada → US shipments, Soleil Transportation can help you with:
Shipment tracking
Keeping you informed of your shipment’s status and progress.
Planning around timing
Working with the parties involved so you understand the estimated arrival and key shipping milestones.
Preparing information
Helping you understand the information and documents you need for a commercial shipment.
Answering questions before you ship
If you aren’t sure whether your goods are affected, ask before shipping instead of waiting until they reach the border.
Note: Soleil Transportation does not replace a customs broker or the customs authorities in determining your final duty liability. For affected shipments, businesses should confirm classification, tariff treatment and duty liability with their customs broker or importer of record.
A tariff change isn’t just a customs issue
For businesses, the impact can go beyond a single duty payment.
If a product faces an extra 50% duty, a business may need to rethink its:
Selling price → margin → inventory → shipping schedule → customer pricing
And if policy keeps changing, a flexible logistics plan becomes even more important.
That’s why Soleil Transportation encourages customers not to wait until the policy takes effect to start checking their shipments.
Soleil Transportation quick check
If you have Canada → US shipments, ask yourself these 5 questions:
- Are my goods on the Section 338 list?
- Have I checked the HTSUS code?
- When are the goods expected to arrive in the US?
- When will the customs broker file the entry?
- Have I confirmed the tariff treatment with my broker or importer?
If you can’t answer any one of these:
Don’t hesitate to ask your logistics provider before you ship.
What happens next?
August 22, 2026 is an important date, but it may not be the end of the story.
Canada and the US are still negotiating. Recent talks have focused on reaching a deal before the deadline, while businesses still have to prepare for the possibility that the tariff will apply.
This means the Canada–US trade environment can still change quickly.
For businesses, the best strategy right now isn’t guessing which way the policy will go.
It’s this:
Stay updated. Check carefully. Prepare early.
Conclusion
The 50% Section 338 tariff is a significant change for Canadian businesses exporting to the US, especially as the list of affected goods is much broader than the products usually mentioned in the headlines.
With the deadline of 12:01 AM ET on August 22, 2026, the timing of each shipment matters more than ever.
If you have goods about to go to the US, don’t just look at the ship date.
Check:
Where the goods are → when they will reach the US → when the entry will be filed → whether the goods fall under Section 338.
If you’re not sure where to start, Soleil Transportation is ready to help you check your shipment’s journey and the information you need before shipping.
Do you have a Canada → US shipment?
Contact Soleil Transportation on +1 888-998-5199 or at info@soleiltransportation.com before you ship, and we’ll check the key points of your shipment together.
Sources
- U.S. Trade Representative – Section 338 tariffs on Canada
- The White House – Section 338 Presidential Proclamation
- Government of Canada – Section 338 tariff information
- Canadian Federation of Independent Business – Canada-U.S. Trade & Tariff Updates
Note: This content was compiled by Soleil Transportation to help customers quickly understand the changes related to Section 338 and Canada–US shipping. Tariff policies and customs procedures may change. For the specific duty obligations of each shipment, businesses should confirm with a customs broker or the competent customs authority before importing.
