We want to make you aware of a previously announced U.S. tariff change under Section 338 measures, currently scheduled to take effect on August 19, 2026.
If implemented as planned, covered Canadian-origin goods entering the United States may be subject to an additional 50% duty, regardless of whether they qualify for CUSMA/USMCA preferential trade terms.
While official confirmation on whether these measures will take effect on August 19 is still pending, we are sharing this news now so you have time to review your products and prepare your business.
1. Check Your HTS Codes & Products
The proposed tariff applies to hundreds of Harmonized Tariff Schedule (HTS) classifications. We strongly advise reviewing the list against the products you ship to the U.S.
[View the Full Section 338 Impacted HTS Code List]
2. Recommended Preparation Steps
To minimize disruptions, we recommend that businesses shipping to the U.S. take the following steps immediately:
- Verify your codes & origin: Confirm your HTS classifications and ensure your product’s country of origin is officially designated as Canada.
- Assess financial impact: Review your pricing and margins to determine how an added 50% duty would be handled or passed on to your buyers.
3. Operational Impact & Carrier Cut-Offs
- No System Changes Required: If the tariffs take effect as scheduled on August 19, 2026, no integration or account updates are required on your end. Applicable duties and taxes will automatically reflect during rate shopping and label generation.
- Carrier Coordination & Cut-Offs: As your 3PL partner, InterFulfillment is actively coordinating with our carrier partners to monitor any updated shipping cut-off times and specific carrier guidelines.
Next Steps:
Please review your product HTS codes against the affected list to understand your business’s potential exposure. We will share any updated carrier cut-off times and instructions as soon as they are finalized.
If you have any questions or concerns, please don't hesitate to reach out to the InterFulfillment team!