Multiple Proclamations Bring Section 338 Changes in the Wake of Canadian Retaliation
On September 8, President Trump released a series of proclamations altering the Section 338 tariffs on Canada. Three of the proclamations include import bans for certain Canadian imports related to motor vehicles, dairy products, and alcoholic beverages. The other two proclamations contain modifications to the Section 338 tariffs on motor vehicles and alcoholic beverages. All of the changes become effective towards the end of September.
All of the exclusion proclamations are effective at 12:01 AM ET on September 29, 2026, and the products listed in the proclamations are excluded from importation into the U.S. Any products subject to these import bans that have been imported but have not yet entered for consumption or withdrawn from a warehouse for consumption prior to the effective date remain subject to the 50% Section 338 duty rate.
Excluding Certain Canadian Products with Respect to Motor Vehicles
The import ban in this proclamation covers goods imported under HTS number 8711.50.00: Motorcycles (including mopeds) and cycles fitted with a reciprocating internal-combustion piston engine of a cylinder capacity over 800 cc.
Excluding Certain Canadian Products with Respect to Dairy
The import ban in this proclamation includes a range of goods from whey protein concentrates under 0404.10.05 to 2202.91.00 non-alcoholic beer.
Excluding Certain Canadian Products with Respect to Alcoholic Beverages
The import ban in this proclamation includes a range of products from beer made from malt under HTS subheading 2203.00.00 to spirits nesoi, fit for use as beverages or for beverage purposes under 2208.90.75. Subheadings marked with “packaged” includes only alcohol products that are packaged in bottles, cans, boxes, kegs, or other similar direct-to-consumption containers.
All of the modification proclamations are effective at 12:01 AM ET on September 15, 2026. Goods listed in Annex I, Part A of the proclamations are subject to the additional ad valorem duty of 50%. Goods listed in Annex I, Part B are no longer considered subject to the additional 50% duty. These modifications continue in effect unless the action is expressly suspended, revoked, supplemented, amended or terminated.
Modifying the Scope of Products with Respect to Motor Vehicles
The modifications in this proclamation under Annex I A include the new products covered by Section 338. These range from other cheeses and substitutes for cheese under subheading 0406.90.99 to electric table, desk, bedside, or floor-standing lamps, not made of base metal, not designed for use solely with LED light sources under 9405.29.80. The modifications in this proclamation under Annex I B include the products removed from Section 338. These range from salt and pure sodium chloride under 2501.00.00 to fishing rod parts and accessories under 9507.10.0080.
Modifying the Scope of Products with Respect to Alcoholic Beverages
The modifications in this proclamation under Annex I A include the new products covered by Section 338. These range from Swiss or Emmentaler cheese without eye formation, Gruyere-process cheese, and other related cheeses and cheese substitutes under subheading 0406.10.64 to outboard motorboats with a length not over 7.5 m under 8903.93.20. The modifications in this proclamation under Annex I B include the products removed from Section 338. There are only two HTS numbers included in this removal: 2208.30.6085 and 2208.70.0060.
We await guidance from Customs and Border Protection regarding implementation.
Canadian Retaliatory Tariffs Take Effect
The tariffs imposed by the Canadian government in retaliation for the Section 338 tariffs have taken effect as of 12:01 AM September 8. These counter-tariffs cover approximately $27.6 billion of U.S. imports and focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Importers can find a list of specific tariffed products here.
Two-Factor Authentication Coming to ACE on September 12
As mentioned in a previous edition of The Carmichael Compass, CBP will be deploying email and SMS two-factor authentication to the ACE Portal. We now have a confirmed date for implementation of September 12, 2026. This was first announced by CBP in the August Notional Development and Deployment Schedule.
Reminder: Rejections Coming for Shipments Lacking Copper Smelt and Cast Declaration
As a friendly reminder, please note that ACE will begin rejecting entry summaries where the copper primary country of smelt and the country of cast are not reported beginning September 14. ACE will return a F794 ADDTNL DEC TYPE RQRD FOR ARTICLE reject when the required declarations are not provided for copper. CBP first advised the trade of this update via a CSMS message on August 31.
Primary country of smelt and country of cast is required for copper goods under HTS subheadings 8544.42.10, 8544.42.20, 8544.42.90, and 8544.49.10. Secondary country of smelt may also be reported but is not required. Goods of U.S. origin do not require country of smelt and cast declaration.