Trade Updates: New Canada Tariffs, Section 232 Onshoring Incentives

Section 338 Canadian Tariffs:

On July 20, 2026, President Donald Trump signed three Presidential Proclamations under Section 338 of the Trade Act of 1930, which authorizes the President to impose additional duties of up to 50% on certain Canadian goods if the Administration finds that a foreign country is engaging in unreasonable, unequal, or discriminatory trade rules that disadvantage U.S. products compared to goods from other countries. To support this action, the Administration asserts that Canada's various tariff practices unfairly restrict U.S. market access, harm U.S. producers, and place U.S. commerce at a competitive disadvantage.

Notably, the Section 338 tariffs apply to covered goods regardless of whether they qualify for preferential treatment under the U.S.-Mexico-Canada Agreement (USMCA). Additionally, the proclamation excludes products subject to Section 232 actions. The tariffs will take effect on August 19, 2026, at 12:01 a.m. ET for goods entered or withdrawn from warehouse for consumption on or after that time.

The new actions target a long list of tariff codes. For example, the auto and auto parts annexes cover hundreds of new tariff codes including boxes, cases, crates and similar articles for the conveyance or packing of goods, plastics, various types of plywood, furniture, and wood products. We urge members to carefully review each list to determine whether products you import from Canada could be targeted.

Section 338 Action on Motor Vehicles: 

• Proclamation here | Annex 1 here | Annex II here 

Section 338 Action on Alcoholic Beverages: 

• Proclamation here | Annex 1 here | Annex II here

Section 338 Action on Dairy: 

• Proclamation here | Annex 1 here | Annex II here

Of note, this provision has never been used before to impose tariffs or block imports. 

A White House fact sheet can be found here.

Section 232 Aluminum Tariffs:

President Trump also issued a Proclamation that directs the Secretary of Commerce to establish an incentive program for companies investing in the construction, expansion, or modernization of U.S. aluminum smelters.

Under the program:

• Companies may submit onshoring plans outlining eligible investments in domestic aluminum production. 
• Approved participants will be eligible to import a volume of primary aluminum at a tariff rate equal to half of the otherwise applicable Section 232 tariff rate. 
• The Department of Commerce will monitor compliance with approved plans. Companies that fail to meet their commitments may have their tariff benefits suspended or revoked, including retroactively.

To read the White House Fact Sheet on Aluminum Imports, click here. 

The RV Industry Association is closely monitoring all changes and will continue updating members as we receive information. 

Please contact RV Industry Association Director of Federal Affairs Samantha Rocci at srocci@rvia.org with any questions and keep up with the latest tariff updates here.