United States: Section 338 additional duties on listed Canadian-origin goods have applied since August 22, 2026. USMCA/CUSMA origin does not exempt listed goods. Product-list changes took effect in September. Some goods can face Section 338 stacked on Section 232.
Canada: Counter-surtaxes on a published list of U.S. imports have applied since September 8, 2026. Steel and aluminum items that already carried a Canadian counter-tariff generally saw it increase, and Canada’s existing surtax on U.S. autos remains.
Later dates: U.S. import prohibitions (not extra duty) on certain Canadian alcohol, dairy, and motorcycle products took effect September 29, 2026. A separate U.S. warning of additional duties on Canadian cars, trucks, and parts starting January 1, 2027 has been announced but has not taken effect; confirm before relying on it. Confirm classification on the official lists, not on this page.
On July 20, 2026 the White House signed three proclamations under Section 338 of the Tariff Act of 1930, adding a duty on listed Canadian goods tied to motor vehicles, alcoholic beverages, and dairy. Talks broke down. The duties took effect together at 12:01 a.m. ET, August 22. Canada answered with counter-surtaxes on September 8, and the U.S. followed with further proclamations adjusting product lists and import rules.
Confirm HTS / HS codes on the official annexes and the Finance Canada product list. This page is a briefing, not a classification tool.
Who is exposed
Canadian exporters into the U.S.
If your goods sit in a Section 338 basket, the extra duty is collected at the U.S. border. Some lines also stack with existing Section 232 metals or auto-related duties. Since September 29, certain alcohol and dairy lines are barred from entry rather than dutiable.
U.S. sellers into Canada
If you ship U.S.-origin product on the September 8 list, the Canadian surtax is due before your Canadian buyer pays you. Steel and aluminum items that already faced a Canadian counter-tariff generally saw it increase, and the surtax on U.S. autos did not go away.
Industry snapshot
| Sector | What changed | Funding path that usually fits |
|---|---|---|
| Steel & aluminum | Canadian counter-tariff increased on many items; U.S. 338 can now stack with 232 on some lines | Revenue-based working capital for deposit-rich shops and fabricators |
| Dairy | 338 basket since Aug 22; Canadian counters on U.S. dairy; U.S. import ban on some Canadian dairy in effect since Sept 29 | Revenue-based if monthly deposits are steady |
| Alcohol | 338 basket since Aug 22; U.S. import ban on some Canadian alcohol in effect since Sept 29 | Revenue-based for operators with deposits |
| Appliances, electronics, pulp & paper | On Canada’s Sept 8 counter-tariff list | Revenue-based for established sellers into Canada |
| Ag equipment, furniture, apparel | On Canada’s Sept 8 list; some U.S. list changes Sept 15 | Revenue-based or equipment-style working capital |
| Autos & parts | Canada’s U.S.-auto surtax remains; a U.S. warning for Jan 1, 2027 was announced | Complete the free check — product and timing both matter |
This is a cash-flow problem
The tariff is not an income-statement curiosity. Duty is cash out the door at clearance, often weeks before the receivable lands. That is the same squeeze as slow broker pay in trucking or a 45-day restaurant supplier term — except the bill is now bigger, and it is not optional. Banks underwrite last year’s tax return. The gap is this month’s landed cost.
Fundseta is a funding marketplace and does not classify goods. We match U.S. and Canadian operators to a revenue-based path (U.S. and Canada) or a credit-based path (U.S. only), through the free check and no hard pull to check.
FAQs
Does USMCA or CUSMA exempt listed goods?
No. Listed goods still carry the extra U.S. or Canadian measure. Check the official annex or Finance Canada schedule for your code.
Are Canada’s September 8 counter-tariffs in force?
They took effect September 8, 2026 on a published list of U.S. imports. Goods in transit to Canada that day were excluded. Confirm current status on the Finance Canada schedule.
What changed after September 8?
U.S. list revisions followed in September, and some goods now face stacked 232 + 338 treatment. Import prohibitions on certain Canadian alcohol, dairy, and motorcycle products took effect September 29, 2026; confirm current status.
Is this legal or customs advice?
No. Confirm classification and origin with a customs broker or trade counsel. Fundseta is an alternative funding marketplace — not a customs broker and not a trade advisor.
How can funding help if tariffs raised my costs?
Working capital covers the weeks between duty paid and customer paid. Checking a path on Fundseta does not require a hard credit pull.
Sources: Department of Finance Canada news release and product list (Aug 25-26, 2026); CBSA customs notices; White House Section 338 proclamations (July 20 and Sept 8, 2026); U.S. CBP guidance on the September 29 import exclusions (CSMS #70050970, Sept 28, 2026); BDO Canada briefing updated Sept 8, 2026; U.S. Department of Commerce / trade.gov market note Sept 8, 2026. Always verify against the current official schedule.