US bans some Canadian alcohol, dairy and motorcycle imports under Section 338 and reworks 50% tariffs
Five proclamations signed Sept. 8, 2026, escalated the U.S. response to Canadian measures, adding import bans from Sept. 29 and changing which goods face the 50% duty.
President Donald Trump signed five proclamations on Sept. 8, 2026, under Section 338 of the Tariff Act of 1930. They banned certain Canadian products from entering the United States and changed the scope of 50% tariffs imposed on Canadian goods in July.
Background: the July tariffs
On July 20, 2026, Trump took three Section 338 actions covering motor vehicles, alcoholic beverages and dairy. USTR said they imposed a 50% tariff on nearly $20 billion in imports from Canada. Section 338 allows duties of up to 50% to offset what the president finds to be a foreign country's discrimination against U.S. commerce.
According to an EY tax alert, the duties were scheduled to start Aug. 19 and were suspended for three days while talks continued. They took effect at 12:01 a.m. ET on Aug. 22 after negotiations broke down.
The September proclamations
Three of the proclamations prohibit imports of specified Canadian-origin goods already subject to the 50% duty, effective for goods imported on or after 12:01 a.m. ET on Sept. 29, 2026, EY reported. They cover:
- A broad range of Canadian alcohol, including beer, wine, cider, whisky, rum, gin and vodka
- Certain whey products, some molasses products and non-alcoholic beer
- Motorcycles with engines larger than 800 cc
The other two proclamations change the list of goods subject to the 50% duty, effective Sept. 15. EY said publicly identified changes include removing rock salt and cement and adding all-terrain vehicles and more dairy products.
The president also directed USTR and the General Services Administration to remove $50 billion worth of Canadian-origin products from GSA's Multiple Award Schedules, USTR said.
Greer said Canada "walked away from a near-final trade deal" and chose retaliation instead. He called the action "a natural consequence" of Canada's treatment of U.S. alcohol, dairy and motor vehicle exports.
EY reported that Canada imposed responding tariffs on Sept. 8 on about US$20 billion of U.S. exports, including steel, dairy and agricultural equipment.
What it meant for carriers
USMCA-originating status gives no relief from either the duties or the bans, EY said, and the Section 338 measures apply on top of Section 232 duties.
Goods covered by the bans that were imported before Sept. 29 but not yet entered for consumption remain subject to the 50% duty rather than the prohibition. EY advised importers to check in-transit and warehoused inventory against that rule and confirm entry timing with their brokers.