Canada–US trade relations remain tense after talks between the two countries failed to reach a deal.

From August 22, 2026, the US has applied an additional 50% tariff to certain groups of Canadian goods worth a total of about US$20 billion.

Notably, on August 24, 2026, President Donald Trump also threatened to impose a 50% tariff on Canadian cars, trucks and auto parts from January 1, 2027.

Meanwhile, Canada plans to apply retaliatory measures to certain US goods from September 8, 2026.

For businesses shipping goods between Canada and the US, the question now isn’t just:

“What is the new tariff?”

More importantly:

“Is our shipment affected, and what do we need to prepare next?”

How is the new 50% US tariff being applied?

On August 22, 2026, the US began applying an additional 50% tariff to certain Canadian goods covered by the measures issued under Section 338 of the Tariff Act of 1930.

Affected groups include many consumer and industrial products, such as:

• Dairy and some food products
• Alcohol and beverages
• Electronics
• Furniture
• Cement and some building materials
• Paper and paper products
• Clothing, footwear and luggage
• Toys
• Cosmetics
• Some machinery and industrial products

The total value of goods covered by the new measures is estimated at about US$20 billion, roughly 5% of Canadian goods exported to the US.

Not all Canadian goods face the 50% tariff

The new tariff does not apply across the board to all Canadian goods.

The White House has specified which products fall under Section 338 and has excluded some groups, including energy, potash, some products subject to Section 232 and certain other goods.

So businesses shouldn’t rely on the product name alone to work out the tariff.

Check:

Product → HTSUS classification → country of origin → applicable tariff treatment

Does CUSMA exempt businesses from the 50% tariff?

Not necessarily.

A particularly notable feature of the new measures is that Section 338 tariffs apply to covered goods even if those goods qualify as originating under USMCA/CUSMA.

This means:

“CUSMA eligible” does not mean “automatically tariff-free”.

Businesses need to determine the exact tariff classification and the rules that apply to each shipment before calculating landed cost.

Check goods in transit now

For Canada → US shipments in transit, businesses should check:

• Where is the shipment?
• What is the ETA?
• Has the customs entry been filed?
• What is the HTSUS classification?
• Is the shipment on the affected list?
• What is the expected duty exposure?

In particular, the date the goods left Canada is not the only factor to consider.

Section 338 ties the additional duties to goods entered for consumption, or withdrawn from warehouse for consumption, from the effective time of each measure.

So businesses with goods in transit should work with their customs broker or importer of record to determine the specific tariff treatment.

Update August 25, 2026: the US threatens a 50% tariff on Canadian vehicles

After the 50% tariff on certain Canadian goods took effect, tensions continued to escalate.

On August 24, 2026, President Donald Trump said the US could impose a 50% tariff on Canadian cars, trucks and auto parts from January 1, 2027.

This is a tariff announced or threatened by Trump for 2027, not a 50% rate already applied to the entire Canadian automotive industry today.

Why should businesses care?

The Canada–US automotive industry has a highly integrated cross-border supply chain.

If the new tariff is implemented, the impact could spread to:

• Auto parts suppliers
• Manufacturers
• Warehouses
• Cross-border transportation
• Distribution networks

Businesses in the supply chain should start assessing their:

Tariff exposure → landed cost → inventory → transportation → supply chain

Reuters also reported concerns that the new tariffs could disrupt the integrated Canada–US automotive supply chain.

Note: January 1, 2027 is the date Trump announced for the new automotive policy. Businesses should not read it as a tariff already in force on all Canadian vehicles today.

Canada prepares counter-tariffs from September 8, 2026

Canada plans to apply “dollar-for-dollar” retaliatory measures to certain US goods from September 8, 2026.

The groups mentioned include:

• Steel
• Dairy products
• Household appliances
• Agricultural equipment
• Machinery
• Pulp and paper
• Electronics

Canada is also considering further responses to the latest US automotive announcement. On August 25, Canadian Minister Dominic LeBlanc said new retaliatory measures could be announced that day.

This matters especially for businesses that trade in both directions:

Canada → US and US → Canada

Businesses should assess tariffs and landed cost separately for each direction.

Three dates businesses need to watch

The situation may still change as Canada and the US continue negotiating.

So businesses should track tariff treatment and shipment status rather than relying on a rate announced at a single point in time.

What should businesses do right now?

1. Check your tariff classification

Don’t rely on the product name alone.

Check:

Product → HTSUS → country of origin → applicable tariff

In particular, confirm whether your product falls under the affected tariff lines.

2. Recalculate landed cost

Businesses should assess:

Product cost + shipping + duty + customs fees + other applicable charges

Then consider the impact on:

Landed cost → margin → selling price

An additional tariff can significantly change the profit on each shipment.

3. Review shipments in transit

If you have Canada → US goods on the move, check:

Location → ETA → entry → tariff → expected duty

Reviewing early gives you more time to work with your customs broker and prepare if extra costs or delays arise.

4. Watch both directions of Canada–US trade

If your business ships:

Canada → US and US → Canada, assess each direction separately.

Each direction may have:

• Different tariffs
• Different classifications
• Different customs requirements
• Different countermeasures
• Different cost exposure

5. Prepare for further changes

Current developments show that trade policy can change quickly.

Businesses should set up a simple monitoring process:

Monitor → check → calculate → coordinate → act

instead of waiting until a shipment runs into trouble before checking.

How can Soleil Transportation help?

With tariffs and trade policy changing quickly, businesses need more than just a shipping option.

They need visibility, communication and coordination throughout the shipment.

Shipment planning

Soleil Transportation helps businesses:

• Plan shipments
• Prepare shipping information
• Estimate transit times
• Plan shipping schedules ahead

Tracking and updates

Soleil Transportation helps with:

• Shipment tracking
• Transit status updates
• ETA monitoring
• Updates when anything changes

Logistics coordination

When a shipment runs into a problem, Soleil Transportation helps coordinate and keep all parties informed.

The goal is to help businesses know:

Where the shipment is → what the issue is → what the next step is

Note: Soleil Transportation supports logistics and shipment coordination. It does not replace a customs broker, the importer of record or the customs authorities in determining tariff classification, customs compliance or duty obligations.

Canada–US shipment quick check

Before your next shipment, check:

• Is the product on the affected tariff lines?
• Has the HTSUS classification been confirmed?
• Is the country of origin correct?
• Does CUSMA actually exempt or reduce the tariff for this shipment?
• What is the new landed cost?
• Are shipments in transit affected?
• Has the customs broker confirmed the tariff treatment?
• Do you need to adjust your inventory or shipping strategy?

If you’re not sure, check before the shipment goes.

Shipping between Canada and the US?

Tariffs may change.

Regulations may change.

But businesses can still stay ahead by following the right information, checking shipments and preparing a logistics plan early.

Soleil Transportation supports businesses with:

Shipment planning · tracking · updates · coordination

Contact us on +1 888-998-5199 or at info@soleiltransportation.com.

Ship smarter. Stay informed.

Sources

1. Reuters – August 25, 2026
   Canada considers new retaliatory tariffs following Trump’s threat to raise tariffs on Canadian cars, trucks and auto parts.
   Read the full article

2. Reuters – August 24, 2026
   Trump threatens 50% tariffs on Canadian cars, trucks and auto parts from January 1, 2027.
   Read the full article

3. Reuters – August 21, 2026
   U.S. imposes 50% tariffs on approximately US$20 billion of Canadian goods after trade talks fail.
   Read the full article

4. The White House – July 20, 2026
   Fact sheet on additional 50% tariffs on certain Canadian goods under Section 338.
   Read the official fact sheet

5. The White House – July 20, 2026
   Presidential proclamation on additional duties on certain Canadian imports under Section 338.
   Read the official proclamation

Disclaimer

This content was compiled by Soleil Transportation to provide up-to-date information on Canada–US trade and help businesses plan their shipping.

Tariff policies, customs requirements, tariff classifications and trade measures may change. This content does not replace legal, tax or customs brokerage advice.

For the specific duty obligations of each shipment, businesses should confirm with a customs broker, the importer of record or the competent customs authority.

If your business has goods about to ship from Canada to the US, today is a day to pay close attention.

After a three-day delay to allow Canada and the US to continue negotiating, the additional 50% tariff under Section 338 of the U.S. Tariff Act of 1930 is now scheduled to take effect at:

12:01 AM ET on August 22, 2026

This means businesses with goods on their way to the US shouldn’t only look at the date the goods leave Canada.

The more important question is:

When will the goods be entered into the US?

The 30-second summary

If you don’t have time to read the whole article, here are 5 things to remember:

• The US is set to add a 50% tariff on certain Canadian goods under Section 338.
• About 554 tariff lines fall within the scope of this measure, worth roughly USD 20 billion of Canadian goods a year.
• The new expected start time is 12:01 AM ET on August 22, 2026, after being pushed back from August 19.
• CUSMA does not automatically exempt goods on the list from the Section 338 tariff.
• If you have goods about to ship to the US, confirm arrival and entry timing with your carrier or broker today.

What is Section 338, and why does it matter this time?

Section 338 is a provision of the Tariff Act of 1930 that lets the US President impose additional duties on goods from a country if the US government finds that the country is discriminating against or disadvantaging US commerce.

On July 20, 2026, President Donald Trump used Section 338 to impose additional duties of up to 50% on certain Canadian goods.

This is especially notable because Section 338 has almost never been used in modern trade practice.

The measures fall into three main groups:

Motor vehicles and other listed goods

This is the largest group, with about 439 tariff lines.

The name includes “motor vehicles”, which can be misleading, because the list isn’t limited to vehicles.

The expanded list also covers many industrial and consumer products, such as:

• Electronics and telecommunications equipment
• Furniture and household goods
• Building materials
• Plastics and packaging
• Clothing, footwear and luggage
• Toys and sporting goods
• Machinery and manufacturing inputs
• Cosmetics and perfume
• Some agricultural products

Dairy

About 52 tariff lines relate to dairy products.

Alcoholic beverages

About 63 tariff lines relate to alcoholic beverages.

In total, these three groups cover about 554 tariff lines.

The most important point: the ship date isn’t everything

This is probably the part businesses most need to pay attention to.

Suppose:

• The goods leave Canada on August 21
• They are in transit on August 21–22
• They are entered into the US after 12:01 AM ET on August 22

If the goods are on the Section 338 list, leaving Canada before the deadline does not automatically exempt them from the new tariff.

The current rules apply the duty to goods entered for consumption, or withdrawn from warehouse for consumption, from the effective time.

Put simply:

Don’t just ask: “Have my goods shipped?”
Also ask: “When will my goods be entered into the US?”

That’s why carriers, customs brokers and importers need to work closely together right now.

What about CUSMA?

This is one of the most commonly misunderstood points.

Normally, goods that meet CUSMA requirements can receive preferential tariff treatment.

With Section 338, it’s a different story.

This additional duty applies even to CUSMA-qualifying goods if they fall within the scope of Section 338.

CUSMA compliance does not mean automatic exemption from the Section 338 tariff.

So businesses shouldn’t rely only on the fact that:

“My goods qualify under CUSMA.”

to conclude that they won’t be affected.

What should businesses do today?

If you have goods about to ship to the US, now is the time to check 4 things.

1. Check your goods

Identify exactly:

• What is the product?
• What is its HTSUS code?
• Is it on the Section 338 list?
• Is it already subject to another tariff?

Don’t rely only on the product name, because some groups on the list are quite broad.

2. Confirm arrival and entry timing

Don’t just check when the goods leave Canada.

Contact your:

Carrier + customs broker + importer

to confirm:

• The estimated arrival
• When the entry will be filed
• Whether the goods can clear before the deadline
• Whether there is a risk of delay

This information is key to deciding whether to speed up a shipment.

3. Check your documents

Make sure the following are prepared accurately:

• Product description
• HS/HTSUS classification
• Country of origin
• Commercial invoice
• Customs documentation

A declaration error can complicate clearance, especially while a new policy is being rolled out.

4. Don’t rush every shipment just because of the deadline

Shipping earlier isn’t always the best choice.

If you aren’t sure the goods can be entered before the deadline, talk to your carrier and broker before deciding.

The goal isn’t:

“Ship as fast as possible.”

The goal is:

Understand the timing → understand your tariff exposure → then decide.

How can Soleil Transportation help?

This is when a carrier needs to do more than “pick up and deliver”.

When policy changes quickly, customers need a partner who can help them see the whole journey of their shipment more clearly.

For Canada → US shipments, Soleil Transportation can help you with:

Shipment tracking

Keeping you informed of your shipment’s status and progress.

Planning around timing

Working with the parties involved so you understand the estimated arrival and key shipping milestones.

Preparing information

Helping you understand the information and documents you need for a commercial shipment.

Answering questions before you ship

If you aren’t sure whether your goods are affected, ask before shipping instead of waiting until they reach the border.

Note: Soleil Transportation does not replace a customs broker or the customs authorities in determining your final duty liability. For affected shipments, businesses should confirm classification, tariff treatment and duty liability with their customs broker or importer of record.

A tariff change isn’t just a customs issue

For businesses, the impact can go beyond a single duty payment.

If a product faces an extra 50% duty, a business may need to rethink its:

Selling price → margin → inventory → shipping schedule → customer pricing

And if policy keeps changing, a flexible logistics plan becomes even more important.

That’s why Soleil Transportation encourages customers not to wait until the policy takes effect to start checking their shipments.

Soleil Transportation quick check

If you have Canada → US shipments, ask yourself these 5 questions:

• Are my goods on the Section 338 list?
• Have I checked the HTSUS code?
• When are the goods expected to arrive in the US?
• When will the customs broker file the entry?
• Have I confirmed the tariff treatment with my broker or importer?

If you can’t answer any one of these:

Don’t hesitate to ask your logistics provider before you ship.

What happens next?

August 22, 2026 is an important date, but it may not be the end of the story.

Canada and the US are still negotiating. Recent talks have focused on reaching a deal before the deadline, while businesses still have to prepare for the possibility that the tariff will apply.

This means the Canada–US trade environment can still change quickly.

For businesses, the best strategy right now isn’t guessing which way the policy will go.

It’s this:

Stay updated. Check carefully. Prepare early.

Conclusion

The 50% Section 338 tariff is a significant change for Canadian businesses exporting to the US, especially as the list of affected goods is much broader than the products usually mentioned in the headlines.

With the deadline of 12:01 AM ET on August 22, 2026, the timing of each shipment matters more than ever.

If you have goods about to go to the US, don’t just look at the ship date.

Check:

Where the goods are → when they will reach the US → when the entry will be filed → whether the goods fall under Section 338.

If you’re not sure where to start, Soleil Transportation is ready to help you check your shipment’s journey and the information you need before shipping.

Do you have a Canada → US shipment?

Contact Soleil Transportation on +1 888-998-5199 or at info@soleiltransportation.com before you ship, and we’ll check the key points of your shipment together.

Sources

• U.S. Trade Representative – Section 338 tariffs on Canada
• The White House – Section 338 Presidential Proclamation
• Government of Canada – Section 338 tariff information
• Canadian Federation of Independent Business – Canada-U.S. Trade & Tariff Updates

Note: This content was compiled by Soleil Transportation to help customers quickly understand the changes related to Section 338 and Canada–US shipping. Tariff policies and customs procedures may change. For the specific duty obligations of each shipment, businesses should confirm with a customs broker or the competent customs authority before importing.