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. As such, 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:
As previously noted, and based on 2025 USITC data (latest full year available), the estimated tariff cost impact from the implemented 50% Section 338 tariff on imports into the US of the codes above is $248 M on imports valued at $496 M.
Today, 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.
