President Trump Pauses Section 338 Tariffs on Canada Products for Three (3) Days


The following was taken in part from the NCBFAA:

On the evening of August 18th, President Trump announced that he would pause the 50% Section 338 tariffs on an array of Canadian products for three (3) days as the U.S. and Canada continue their trade negotiations. The tariffs were initially scheduled to take effect this Wednesday, August 19th, at 12:01 AM EDT.

“After considering the information, opinions, and recommendations that have been provided to me by senior executive branch officials, among other relevant information and considerations, I determine that in these circumstances, the public interest requires suspending for a period of three (3) days the additional ad valorem duties imposed in Proclamation 11046, 11047, and 11048,” the president said. 

The presidential action states the effective date of the additional ad valorem duties imposed in Proclamations 11046, 11047, and 11048 shall now be 12:01 AM EDT on August 22nd. “Accordingly, the chapeau of Annex II of each of Proclamations 11046, 11047, and 11048, is amended by deleting the effective date ‘August 19th, 2026’ and inserting ‘August 22nd, 2026’ in lieu thereof,” the action said.

On July 20th, President Trump said in a proclamation that his administration, under Section 338 of the 1930 Trade Act, would impose an additional ad valorem duty of 50% on certain products of Canada, effective 12:01 AM EDT on August 19th, in response to Canada’s tariff rate quotas for dairy products.

In another proclamation utilizing Section 338 announced on July 20th, the president called for additional ad valorem duty of 50% on certain Canadian products, effective 12:01 AM EDT on August 19th, in response to Canada’s prohibition on imports and sales of U.S. alcoholic beverages.

In a third proclamation from the White House on July 20th, it was stated that they would apply Section 338 tariffs of 50% on certain Canadian products, effective 12:01 AM EDT on August 19th 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.

RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any questions.

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