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Section 338 Canada Import Bans: What They Mean for Cross-Border Freight

Sept. 29Import bans on listed Canadian products, 12:01 a.m. ETProclamations 11061-11063 · Sept. 14, 2026
50%Section 338 additional duty on covered Canadian goods not bannedProclamation 11046 · July 23, 2026
$20BU.S. exports hit by Canada’s retaliatory tariffs, per the White HouseWhite House fact sheet · Sept. 8, 2026

What happened under Section 338

Since Sept. 29 at 12:01 a.m. ET, certain Canadian alcoholic beverages, dairy products and large motorcycles are excluded from importation into the United States under Section 338 of the Tariff Act of 1930. The bans come from three proclamations signed Sept. 8 and published Sept. 14: Proclamation 11061 (alcoholic beverages), Proclamation 11062 (dairy) and Proclamation 11063 (motorcycles over 800 cc, HTSUS 8711.50.00). They escalate the 50% additional duties first set in July under Proclamation 11046 and its dairy and motor vehicle counterparts, which took effect Aug. 22 after a three-day suspension lapsed. The White House fact sheet says the 50 percent tariffs apply “regardless of whether a good originates under” USMCA, and that scope changes adding products such as ATVs took effect Sept. 15.

Section 338 Canada measures by the numbers

Status of the Canadian productTreatmentSource
On a ban annex, imported on or after Sept. 29Excluded from importationProcs. 11061-11063
On a ban annex, imported before Sept. 29 but not yet entered or withdrawn from warehouseStays subject to the 50% dutyProcs. 11061-11063, para. (2)
Covered by Section 338 duties, not banned50% additional ad valorem duty, on top of regular dutiesProc. 11046 and counterparts
USMCA-originating covered goodsNo exemption from the 50% dutyWhite House fact sheet
Goods subject to Section 232 duties (alcohol proclamation)Section 338 duty does not applyProc. 11046, para. (2)

What the Section 338 Canada bans mean for your shipment

Cross-border shippers face two different problems. Banned goods cannot be entered at all, so a truck carrying listed product that arrives on or after Sept. 29 will not clear. Goods still on the duty list clear, but with a 50% surcharge on customs value that most landed-cost models never assumed for USMCA trade. For other U.S. tariff programs that can apply to the same goods, see our Section 232 steel and aluminum guide.

Worked example (illustrative, check your own classification)

A U.S. distributor imports a $50,000 truckload of a Canadian product that remains on the Section 338 duty list.

  • Section 338 additional duty: $50,000 x 0.50 = $25,000
  • Goods plus Section 338 duty: $50,000 + $25,000 = $75,000, before regular HTSUS duty, MPF, freight and the customs entry fee
  • Per unit, for 2,000 units: $25,000 / 2,000 = $12.50 added to each unit
  • If the same product moves to a ban annex: the shipment cannot be entered, and the cost becomes return freight or disposal plus lost sales

Next steps for cross-border shippers

  • Check each Canadian-origin SKU’s 10-digit HTSUS code against the annexes to Proclamations 11061, 11062 and 11063.
  • Do not assume a USMCA certificate removes the duty; review your USMCA origin documents for other goods, but not for Section 338 lines.
  • Hold or reroute any loads of banned products still at origin; confirm the status of goods already in a U.S. warehouse with your customs broker.
  • Rebuild landed cost estimates for products on the 50% list, and tell customers before price changes hit.
  • Allow extra time for northern border clearance while brokers and CBP work through the new annexes, and plan pickup windows accordingly.

More on the wider tariff picture: how U.S. tariffs affect freight between the U.S. and Canada.

How ExFreight can help

For trucking-only shipments, including moves from Canada, ExFreight acts as a broker (FMCSA MC-677423-B). On truck-only shipments from Canada the U.S. customs entry is an additional fee, and duties, taxes, bonds and MPF are billed separately. Quotes are informational and subject to change; shipments can be re-invoiced if actual details differ.

Sources

  • Primary The White House, Fact Sheet: President Donald J. Trump Responds to Canada’s Retaliation, Sept. 8, 2026
  • Primary Federal Register, Proclamation 11061, Excluding Certain Canadian Products (Alcoholic Beverages), 91 FR 58311, Sept. 14, 2026
  • Primary Federal Register, Proclamation 11062, Excluding Certain Canadian Products (Dairy), 91 FR 58319, Sept. 14, 2026
  • Primary Federal Register, Proclamation 11063, Excluding Certain Canadian Products (Motor Vehicles), 91 FR 58325, Sept. 14, 2026
  • Primary Federal Register, Proclamation 11046, Imposing Additional Duties (Alcoholic Beverages), 91 FR 46639, July 23, 2026

This guide explains market and regulatory changes for shippers. It is not customs, legal or financial advice. Rates quoted are third-party index values, not ExFreight prices.

Frequently asked questions

Which Canadian products are banned from U.S. import?

Products listed in the annexes to Proclamations 11061 (alcoholic beverages such as beer and wine), 11062 (dairy products such as whey) and 11063 (motorcycles over 800 cc). The bans apply to goods imported on or after 12:01 a.m. ET on Sept. 29, 2026.

Does USMCA exempt goods from the Section 338 duty?

No. The White House fact sheet of Sept. 8, 2026 states the 50 percent Section 338 tariffs apply to covered goods regardless of whether they originate under USMCA. A USMCA certificate of origin still matters for other goods, but it does not remove this duty.

Written by

ExFreight Team

ExFreight’s logistics experts with 15+ years of experience in freight forwarding from China to over 150 countries worldwide.

Published September 30, 2026
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