New U.S. Tariffs on Select Canadian Products Take Effect

On Saturday, the Trump Administration's new 50% tariff kicked in on certain imports from Canada. The tariffs, announced in July, were originally supposed to go into effect on Aug. 19; however, President Trump issued a three-day delay in the implementation as negotiators neared a deal late last week. Those talks broke down late last week, and in response, Canada's Prime Minister Mark Carney announced Canada intends to impose retaliatory tariffs starting Sept. 8. At time of press, Canada has not released details of the products subject to its tariffs.

When Did the New Tariffs Take Effect
The new tariffs on products entering the U.S. from Canada went into effect on Aug. 22. Canada has indicated it will match the new U.S. tariffs "dollar for dollar" starting Sept. 8.

50% Tariff Impacts on Certain Marine Manufacturing Products
President Trump said the new tariffs are due to Canada's alleged discrimination against U.S. exports of dairy products, alcoholic beverages, and autos. However, there are some marine manufacturing products and components included in the 50% tariff lists included in Annex I and Annex II, such as floating docks, electronics, certain vessels (8906.90.00).

No Exemption for USMCA/CUSMA Goods
Unlike previous tariffs, the new Section 338 tariffs apply to the imports regardless of whether it is compliant with the U.S.-Mexico-Canada Trade Agreement (USMCA/CUSMA).

Section 232 Tariffs
Products subject to existing Section 232 tariffs on derivative products are not subject to the new Section 338 tariffs.

Section 338 Tariffs
Section 338 of the Tariff Act of 1930 was signed into law during the Great Depression, allowing for the president to put tariffs up to 50% on imports from countries that discriminate against the U.S. This is the first time Section 338 has been used to apply tariffs.

U.S. Manufacturers: For more information, contact NMMA's Clay Crabtree, interim vice president of public policy & government affairs, at [email protected].

Canadian Manufacturers: For more information, contact NMMA Canada's senior manager of government relations, Patrick Pereira, at [email protected]