Additional Tariffs under Section 338 of the U.S. Tariff Act

Dear Members,

We are sharing an important update regarding new U.S. tariffs that may affect Whitby businesses exporting goods to the United States or operating within cross-border supply chains.

On July 20, 2026, the United States announced additional tariffs under Section 338 of the U.S. Tariff Act.

The recently announced measures include:

• An additional 50% tariff on selected Canadian goods, representing nearly US$20 billion in imports.
• An effective date of August 19, 2026.
• Products within broad categories that include certain alcoholic beverages, dairy-related goods, automotive-related products, wine, hockey sticks and cement.
• Application to covered goods even when they would otherwise qualify under CUSMA/USMCA.
• Exemptions for energy, potash, fish, certain critical minerals and products already subject to Section 232 tariffs.

These are not blanket tariffs on everything Canada exports. However, businesses should carefully determine whether their specific products are included.

The tariff is paid by the U.S. importer when a covered Canadian product enters the United States. The effects may still be felt by Canadian exporters if U.S. customers seek lower prices, reduce orders, pass costs along to consumers or move to other suppliers. Canadian businesses could therefore experience reduced demand, tighter margins and increased supply-chain uncertainty.

To help members understand which products may be affected, the Whitby Chamber of Commerce, in conjunction with our colleagues at the Huron Chamber of Commerce, has provided a Section 338 Tariff Resource Guide. We would like to hear from you what these possible implications mean to you and your business.  Please reach out to Karey@whitbychamber.org .

[ACCESS THE RESOURCE GUIDE HERE]

Important notice

The lists in this guide were compiled from the three White House Annex I product schedules and mapped against the U.S. Harmonized Tariff Schedule. The broad product categories are intended only to make the detailed schedules easier to understand and navigate.

Businesses should not rely on this guide for customs classification, compliance or other business decisions. Before taking action, please consult a qualified customs broker, trade adviser or legal professional.

We recognize that ongoing tariff changes create considerable uncertainty for businesses. The Whitby Chamber will continue monitoring developments and sharing credible information and resources as they become available.