On August 18, 2026, U.S. President Donald Trump temporarily suspended the implementation of the 50% Section 338 tariffs on certain Canadian goods. The action delays, for a period of three days, the additional ad valorem duties imposed under Proclamations 11046, 11047, and 11048.
As a result, affected Canadian imports will continue to enter the United States at the previously applicable duty rates, avoiding the additional 50% Section 338 duty while the suspension remains in effect. This temporary relief provides importers with additional time to plan for potential cost impacts and may help reduce short-term disruptions to cross-border trade.
The suspension follows ongoing negotiations between the United States and Canada as both countries work toward finalizing a trade agreement. The Section 338 tariffs are now scheduled to take effect at 12:01 a.m. Eastern Time on August 22, 2026, unless further action is taken by the Administration.
Key takeaway: The suspension does not eliminate the Section 338 tariffs. It provides a temporary three-day reprieve for affected Canadian goods while U.S. and Canadian officials continue trade negotiations.