U.S. Trade Policy and Tariff Actions
- U.S. Implements 50% tariff on select imports from Canada using Section 338: On 21 August the U.S. and Canada failed to reach an agreement which could have nullified the implementation of Section 338 tariffs on select imports from Canada. Beginning 12:01 am on 22 August Section 338 tariffs of 50% are applied on the following food processing and packaging machinery regardless of USMCA status:
- 8422.3091: Machinery for filling, closing, sealing, capsuling or labeling bottles, cans, boxes or other containers; machinery for aerating beverages; nesoi
- 8422.4091: Packing or wrapping machinery, nesoi
- 8422.9091: Parts of packing or wrapping machinery, nesoi
- 8438.40: Brewery machinery, nesoi
CBP issued CSMS guidance regarding the implementation of the Section 338 tariffs on certain imports from Canada. The guidance states that Section 338 tariffs are eligible for duty drawback.
Canada’s Prime Minister Mark Carney indicated that Canada will impose retaliatory tariffs beginning 8 September on U.S. steel, appliances, and agricultural equipment, among other industries the U.S. previously targeted in Canada. As of 24 August, the list of products in scope of retaliation has not yet been published. These actions are continuing to develop, and we will monitor for updates impacting PMMI members.
- CBP Notifies of Upcoming Importer-of-Record Information Accuracy Review: On 19 August 2026, U.S. Customs and Border Protection (CBP) issued a Federal Register Notice alerting that beginning 18 September 2026, CBP will be conducting a comprehensive review of Importer-of-Record (IOR) CBP Form 5106 Importer Identity Forms and verifying the information provided on the form. CBP will void the IOR number If CBP determines that an IOR or customs broker acting on behalf of an IOR has failed to provide complete and accurate information, rendering it as ineligible to import merchandise. Additional changes from CBP/DHS are expected over the coming months to strengthen customs enforcement in line the Executive Order 14411: Strengthening Customs Enforcement (EO) and implement new requirements of importers (e.g., supply chain due diligence, additional bonding and domestic asset requirements, and expected changes for U.S. and foreign IORs, among others).
