2026 HTS Revision 17: 50% Section 338 Tariff on Canada
2026 HTS Revision 17 added a 50% Section 338 tariff on about 550 listed Canadian products from August 22, 2026, owed even when USMCA is claimed.
Brendan McLaughlinFounder of HTS Hero- Published
- Reading time
- 3 min read
Key takeaways
- 2026 HTS Revision 17 took effect on August 24, 2026. Its Section 338 duties on products of Canada apply from August 22, 2026.
- Headings 9903.03.12, 9903.03.13 and 9903.03.14 add 50% to listed Canadian products, from beer, wine and spirits to dairy, wood and paper.
- The 50% applies even when USMCA or other special tariff treatment is claimed, and it stacks with other additional duties.
- Revision 17 exempted Section 232 goods (9903.03.15) and certified civil aircraft articles (9903.03.16). From September 15, 2026, Revision 19 limited the Section 232 exemption to dairy products under 9903.03.13.
- The duties were first set for August 19, 2026. Proclamation 11056 moved the start to 12:01 a.m. eastern time on August 22, 2026.
2026 HTS Revision 17 brings Section 338 into the tariff schedule. Section 338 of the Tariff Act of 1930 lets the President add duties of up to 50% on goods from a country that discriminates against U.S. commerce. Proclamations 11046, 11047 and 11048 use it against Canada: a flat 50% on three lists of Canadian products, from August 22, 2026. That date falls two days before Revision 17 took effect, so entries on August 22 and 23 are covered too.
At a glance
| Revision | 2026 HTS Revision 17 |
| In force from | August 24, 2026 |
| Tariff changes effective | August 22, 2026 |
| Programs affected | Section 338 Canada (new) |
| Previous revision | Revision 16 |
| Next revision | Revision 18 |
What changed
Three product lists, one 50% rate
New U.S. note 51 to Chapter 99 sets out the products. Each list has its own heading, and all three are 50%:
| Heading | List | Products | Rate |
|---|---|---|---|
9903.03.12 | Note 51(b)(1), 63 provisions | Beer, wine and spirits, cosmetics, wood, paper, sporting goods | + 50% |
9903.03.13 | Note 51(b)(2), 52 provisions | Dairy and other food products | + 50% |
9903.03.14 | Note 51(b)(3), 439 provisions | Goods across Chapters 4 to 97 | + 50% |
The duties apply only to products of Canada. The Column 2 rate doesn't change.
The three proclamations, signed July 20, 2026, first set August 19 as the start date. Proclamation 11056, signed August 18, suspended the duties for three days while talks with Canada continued, which is why they start on August 22.
The 50% applies even under USMCA
Note 51(a) says the 50% applies even when special tariff treatment is claimed. A USMCA-qualifying Canadian wine still pays the full Section 338 duty. The duties also stack with any other additional duty in Chapter 99.
A USMCA claim still matters
Claiming USMCA can still remove other duties, like the 10% country rate on the wine below. The 50% stays either way.
Exemptions: Section 232 goods and civil aircraft
9903.03.15: goods subject to Section 232 duties, using the same list of Section 232 headings found elsewhere in Chapter 99, patented pharmaceuticals included. These pay their Section 232 duty and no Section 338 duty.9903.03.16: civil aircraft articles of Canada (excluding military and unmanned aircraft) that meet general note 6, in the listed provisions.
Some of these products are banned from September 29, 2026
Proclamations 11061, 11062 and 11063 ban imports of certain Canadian products listed in their annexes from 12:01 a.m. eastern time on September 29, 2026: many beers, wines and spirits (some only when packaged for consumers), whey, molasses and non-alcoholic beer, and motorcycles over 800 cc. CBP rejects any entry that includes them (CSMS #70050970). Goods imported before September 29 but not yet entered for consumption can still be entered, and they pay the 50% Section 338 duty.
What it means for importers
On $10,000 of Canadian wine under 2204.21.20, entered before the September 29 ban:
| Entered | Headings | Additional duty |
|---|---|---|
| August 21, 2026 | No Section 338 duty | Country rate only |
| August 22, 2026 | 9903.03.12 50% + 10% country rate | $6,000 |
| August 22, 2026, USMCA claimed | 9903.03.12 50% | $5,000 |
| Same wine from France | No Section 338 duty | Unaffected |
From September 29, 2026, this wine is on the Proclamation 11061 ban list, so it can't be entered at all.
If you import from Canada, check every HTS line against the three note 51(b) lists, and against the ban annexes. A line can be on a list and still be exempt if it's a Section 232 good, but that exemption didn't last long: Revision 19 limited it to dairy products from September 15, 2026, and added more products to the lists. For how the 50% combines with Section 232 and the country rates, see US tariff stacking rules, and for every 2026 revision, the 2026 HTS revisions hub.
Frequently asked questions
What is the Section 338 tariff on Canada?
From August 22, 2026, products of Canada listed in U.S. note 51(b) to Chapter 99 pay an additional 50% under headings 9903.03.12, 9903.03.13 or 9903.03.14. The lists cover about 550 provisions, including beer, wine and spirits, cosmetics, dairy, wood and paper products.
When did the Section 338 tariff on Canada take effect?
At 12:01 a.m. eastern time on August 22, 2026. Proclamations 11046, 11047 and 11048 first set August 19, and Proclamation 11056 pushed the start back three days. HTS Revision 17, in force from August 24, carries the August 22 date, so entries on August 22 and 23 owe the duty too.
Does USMCA exempt Canadian goods from the Section 338 duty?
No. Note 51(a) says the 50% applies even when special tariff treatment, such as USMCA, is claimed. A USMCA claim can still remove other duties, like the country rate, and the Section 338 duty stays in place.
Which Canadian goods are exempt from the Section 338 duty?
Under Revision 17, goods subject to Section 232 duties (heading 9903.03.15) and civil aircraft articles meeting general note 6, excluding military and unmanned aircraft (heading 9903.03.16), don't pay it. Revision 19 later narrowed the Section 232 exemption to dairy products from September 15, 2026.
Sources
The official documents this article is based on
- USITC: 2026 HTS Revision 17 change record
- Federal Register: Proclamation 11046, Imposing Additional Duties To Offset Canadian Discrimination (Alcoholic Beverages)
- Federal Register: Proclamation 11047, Imposing Additional Duties To Offset Canadian Discrimination (Dairy)
- Federal Register: Proclamation 11048, Imposing Additional Duties To Offset Canadian Discrimination (Motor Vehicles)
- Federal Register: Proclamation 11056, Temporary Suspension of Additional Duties To Offset Canadian Discrimination
- Proclamation 11061: Excluding certain Canadian alcoholic beverages from importation (Federal Register)
- Proclamation 11062: Excluding certain Canadian products from importation (Federal Register)
- Proclamation 11063: Excluding certain Canadian products from importation (Federal Register)
- CBP CSMS #70050970: Certain Canadian products excluded from importation
Brendan McLaughlin · Founder of HTS Hero
Brendan is the founder of HTS Hero and a self-proclaimed tariff nerd. He has spent more than a year building and maintaining HTS Hero's tariff calculator, which meant reading every government tariff update and all 4,000+ pages of the Harmonized Tariff Schedule, across many revisions. He writes about US tariffs regularly on LinkedIn.
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