Tariff WatchSection 338 of the Tariff Act of 1930, codified at 19 U.S.C. 1338, permits the President to impose new or additional duties on the goods of a country found to discriminate against the commerce of the United States. It is among the oldest tariff authorities on the books and, until 2026, had not been used in the modern era.
How the authority works
A finding of discrimination, then duties of up to fifty percent.
The statute directs the President to specify and declare new or additional duties where a foreign country imposes on the commerce of the United States any unreasonable charge, exaction, regulation or limitation that is not equally enforced on the like articles of every foreign country. The additional duty may not exceed fifty percent ad valorem.
Section 338 differs from Section 232 and Section 301 in that no agency investigation is prescribed. The finding is the President’s, and the instrument is a proclamation.
The Canada action
Three proclamations of 20 July 2026, in force from 22 August.
Three proclamations of 20 July 2026 declared additional duties on goods of Canada, each addressed to a separate grievance: alcoholic beverages under Proclamation 11046, dairy under Proclamation 11047, and motor vehicles under Proclamation 11048. Each carries fifty percent and each created its own chapter 99 heading, at 9903.03.12, 9903.03.13 and 9903.03.14.
The titles name what Canada is said to discriminate against rather than what the duty falls on. Heading 9903.03.14 is titled for motor vehicles but covers 439 provisions across 55 chapters, with a single chapter 87 line among them. The covered provisions are enumerated in U.S. note 51(b); the annexes to the proclamations are published as images and are not a usable list.
Related
Elsewhere on this site.