On August 19, 2026, U.S. President Trump is imposing a 50% tariff on certain Canadian products. The new duties are to offset the burden or disadvantage from a foreign country’s discrimination against or unequal imposition on the commerce of the United States related to dairy, alcoholic beverages, and motor vehicles. The President issued three proclamations, each containing a list of Harmonized Tariff Schedule (HTS) numbers subject to the new tariff. It’s important to note that the lists include a wide range of products.
Details
Effective Date
Certain products of Canada, as set forth in the Annex to the three proclamations, imported into the United States shall be subject to an additional ad valorem duty of 50 percent, effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 19, 2026.
The duties imposed in this proclamation shall not apply to articles subject to duties pursuant to section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), or articles, excluding unmanned aircraft, subject to the World Trade Organization Agreement on Trade in Civil Aircraft.
9903.03.15 – Section 232 Exemption
This exemption applies to products subject to Section 232, as noted below. If updates are made to the list of Section 232 HTS numbers, it can be located in U.S. note 51 (d) of subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS).
articles of aluminum, of steel or of copper or derivative aluminum or steel articles provided for in headings 9903.82.02 and 9903.82.04–9903.82.26;
passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and light trucks provided for in headings 9903.94.01, 9903.94.02 (as applied to the U.S. content of passenger vehicles and light trucks described in subdivision 33(d) of this subchapter upon approval from the Secretary of Commerce), 9903.94.03, 9903.94.31, 9903.94.40, 9903.94.41, 9903.94.50, 9903.94.51, 9903.94.60 and 9903.94.61;
parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and parts of light trucks provided for in headings 9903.94.05, 9903.94.06 (as applied to parts of passenger vehicles that are eligible for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA) other than automobile knock-down kits or parts compilations), 9903.94.07, 9903.94.32, 9903.94.33, 9903.94.42, 9903.94.43, 9903.94.44, 9903.94.45, 9903.94.52, 9903.94.53, 9903.94.54, 9903.94.55, 9903.94.62, 9903.94.63, 9903.94.64, 9903.94.65, 9903.94.66, 9903.94.67, 9903.94.68 and 9903.94.69, and parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and cargo vans) and parts of light trucks subject to an import adjustment offset pursuant to Proclamation 10925 of April 29, 2025 (90 FR 18899), as amended;
wood products provided for in headings 9903.76.01, 9903.76.02, 9903.76.03, 9903.76.20, 9903.76.21, 9903.76.22, 9903.76.23 and 9903.76.24;
medium- and heavy-duty vehicles, buses and other vehicles provided for in headings 9903.74.01, 9903.74.02, 9903.74.03 and 9903.74.06;
medium- and heavy-duty vehicle parts provided for in headings 9903.74.08, 9903.74.09 and 9903.74.10, and parts of medium- and heavy-duty vehicles subject to an import adjustment offset pursuant to Proclamation 10984 of October 17, 2025 (90 FR 48451);
semiconductor articles provided for in heading 9903.79.01; and
patented pharmaceutical articles provided for in headings 9903.04.60–9903.04.66.
9903.03.16 – Civil Aircraft and Parts Exemption
This exemption is for civil aircraft and parts meeting the criteria of General Note 6 and if the product HTS number is a part of the exemption.
The HTS list can be found in Annex II, or U.S. note 51 (d) of subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS).
