The United States is escalating its trade dispute with Canada from additional tariffs to outright import restrictions, announcing that specified Canadian alcohol, dairy-related products and motorcycles will be prohibited from entering the United States beginning September 29, 2026.
President Trump signed five proclamations on September 8 under Section 338 of the Tariff Act of 1930, expanding actions Alba first flagged when the administration invoked this rarely used authority against Canada in July.
The latest measures include both import bans and changes to the Canadian products subject to the additional 50% duties already imposed under Section 338, which took effect August 22 and which Alba covered in detail at the time in 50% Tariffs Take Effect on Selected Canadian Imports.
What Will Be Banned?
Effective at 12:01 a.m. ET on September 29, certain Canadian products identified by HTSUS classification will be excluded from importation into the United States.
The affected categories include:
- Certain Canadian alcoholic beverages, including specified beer, wine and spirits
- Certain dairy-related products, including specified whey products and molasses
- Certain motorcycles and mopeds
The restrictions do not constitute a blanket ban on Canadian imports. Importers should review the applicable HTSUS classifications to determine whether individual products are subject to the prohibition.
Additional Canadian Goods Face 50% Duties, on a Separate Timeline
The administration is also modifying the lists of Canadian products subject to the additional 50% Section 338 tariffs. This is a distinct action from the import ban above, with its own effective date: these tariff-list changes take effect September 15, two weeks before the ban.
Certain cheeses and products within categories including paper, aluminum and other metals, furniture and related goods are among the products being added to the revised tariff lists. At the same time, certain products previously subject to the additional duties, including rock salt and cement, are being removed.
The result is an increasingly product-specific trade environment in which Canadian-origin merchandise may be prohibited, subject to a 50% additional duty or unaffected by these particular Section 338 actions depending on its classification. Importers dealing with entries that carry more than one Chapter 99 heading should see Alba’s guidance on sequencing Section 301, 338 and 232 classifications on the same entry.
Treatment of Goods Imported Before September 29
The proclamations contain an important provision for merchandise arriving before the ban takes effect.
Products covered by the new import prohibitions that are imported but have not yet been entered for consumption or withdrawn from warehouse for consumption before September 29 will remain subject to the applicable 50% Section 338 duty. This language tracks the official proclamation text closely.
Beginning September 29, covered products will instead be excluded from importation.
U.S. Customs and Border Protection has been authorized to issue additional rules, guidance and instructions necessary to implement the restrictions and to make related HTSUS modifications through notice in the Federal Register.
Why Is the U.S. Taking This Action?
The latest measures follow an escalating series of actions between the United States and Canada.
The United States previously imposed 50% additional duties on specified Canadian products under Section 338. Canada subsequently implemented retaliatory tariffs of 15%, 25% and 50% on approximately C$27.6 billion in U.S.-origin goods, effective September 8, as Alba reported the same day.
The White House and U.S. Trade Representative say the new U.S. restrictions respond to Canada’s continued discriminatory treatment of American products in the alcoholic beverage, dairy and motor vehicle sectors, the same three sectors named in the original July proclamations.
Section 338 authorizes the President, under specified circumstances, to impose additional duties of up to 50% on products from a country determined to discriminate against U.S. commerce. If that discrimination continues or increases, the statute also provides authority to exclude products from that country from U.S. importation.
The September 8 proclamations represent a significant escalation from additional tariffs to actual import prohibitions.
What Importers Should Do Now
Companies importing Canadian-origin merchandise should immediately review upcoming shipments scheduled to arrive around or after September 29.
Importers should:
- Confirm the HTSUS classification and Canadian origin of affected merchandise.
- Determine whether products fall within the new import prohibitions or revised 50% tariff lists, keeping the September 15 and September 29 effective dates separate.
- Review goods currently in transit or warehouse inventory that could be affected by the September 29 effective date.
- Monitor forthcoming CBP and Federal Register guidance for implementation details and HTSUS changes.
- Evaluate sourcing, inventory and contractual implications if merchandise will no longer be admissible after the effective date.
The situation between the United States and Canada continues to evolve, and additional changes remain possible.
The Alba team is monitoring the implementation of these measures and forthcoming CBP guidance. Importers with Canadian-origin goods should review their classifications and upcoming entries now to understand how the new restrictions may affect their supply chains.
Contact the Alba team for assistance evaluating Canadian-origin imports and the impact of the new Section 338 restrictions.
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References
- White House, “Excluding Certain Canadian Products from Importation into the United States… With Respect to Motor Vehicles” (September 8, 2026): https://www.whitehouse.gov/presidential-actions/2026/09/excluding-certain-canadian-products-from-importation-into-the-united-states-in-response-to-continued-discrimination-against-the-commerce-of-the-united-states-with-respect-to-motor-vehicles/
- White House, “Excluding Certain Canadian Alcoholic Beverages from Importation into the United States…” (September 8, 2026): https://www.whitehouse.gov/presidential-actions/2026/09/excluding-certain-canadian-alcoholic-beverages-from-importation-into-the-united-states-in-response-to-continued-discrimination-against-the-commerce-of-the-united-states-with-respect-to-alcoholic-bever/
- Government of Canada, Department of Finance, list of products subject to September 8 counter-tariffs: https://www.canada.ca/en/department-finance/news/2026/08/list-of-products-from-the-united-states-subject-to-counter-tariffs-effective-september-8-2026.html
