President Donald Trump issued a proclamation on August 18, 2026, pushing back the effective date of 50% Section 338 tariffs on certain Canadian goods by three days, to 12:01 a.m. Eastern on August 22, 2026. The delay was announced just hours before the new Section 338 tariffs were to go into effect on August 19th.
The tariffs at issue were imposed under three separate proclamations issued on July 20, 2026, each finding that Canada was discriminating against U.S. commerce and imposing additional ad valorem duties under Section 338 of the Tariff Act of 1930. Section 338 authorizes the President, where he determines it will serve the public interest, to offset a burden or disadvantage on U.S. commerce caused by a foreign country’s unreasonable or discriminatory treatment by imposing additional duties of up to 50% ad valorem. The statute also authorizes the President to suspend, revoke, supplement, or amend any Section 338 proclamation whenever the public interest requires.
According to the President’s August 18, 2026, proclamation, senior executive branch officials advised that Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue in the three underlying proclamations, and that the status of ongoing negotiations between the United States and Canada favored a temporary suspension of the additional duties. The proclamation also directs the heads of relevant executive agencies to take all appropriate steps to implement the suspension and to make any modifications to the Harmonized Tariff Schedule necessary to effectuate the change. Where implementation requires a refund of duties already collected, refunds will be processed pursuant to CBP’s standard procedures.
The three-day suspension is expressly tied to the finalization of a deal between the U.S. and Canada. Absent a finalized agreement or a further extension, the additional duties are scheduled to take effect at 12:01 a.m. eastern time on August 22, 2026.
The Husch Blackwell International Trade and Supply Chain team continues to monitor developments related to U.S.-Canada trade negotiations and will provide updates as they become available. If you have questions about coverage, timing, or supply chain impacts, please contact your Husch Blackwell attorney.