The Trump Administration has just released several proclamations that announce a series of tariffs on select imports from Canada. All of these proclamations draw on Section 338, a tariff authority that has never been used and aims to counteract discrimination of US goods. Actions include:
- 50% tariff on imports of a variety of goods from Canada. These tariffs will be imposed on the targeted goods as outlined in various annexes whether or not they are USMCA-compliant.
- Upon preliminary review of the annexes:
- Most packaging and processing machinery of 8422 and 8438 are not targeted, except for the below machinery which are listed in the annex related to proclamation on discrimination against US motor vehicles.
- 8422.3091: Machinery for filling, closing, sealing, capsuling or labeling bottles, cans, boxes or other containers; machinery for aerating beverages; nesoi
- 8433.4091: Packing or wrapping machinery, nesoi
- 8411.9091: Parts of packing or wrapping machinery, nesoi
- 8438.40: Brewery machinery, nesoi
- There is other machinery other than of 8422 and 8438 which are listed and may be of interest to your members.
- Tariffs go into effect in 30 days at 12:01 AM Eastern time on 19 August 2026.
- Products subject to tariffs under Section 232, as well as energy, potash, and select critical minerals are excluded.
We anticipate this use of Section 338 sets a precedent for future tariff actions from the Trump Administration targeting specific sectors, specific tariff lines and specific countries. Given that this is the first use of Section 338, we will watch this space to see if these actions may be challenged by importers.
Please find the Fact Sheet as well as the individual proclamations linked below for your reference and to share with members:
