Member Dashboard50% tariffs on Canadian imports begin Aug. 19
Beginning Aug. 19, the U.S. will impose additional 50% tariffs on certain Canadian goods under Section 338 of the Tariff Act of 1930. The tariffs target products linked to disputes over Canada’s treatment of U.S. automobiles, alcoholic beverages and dairy exports and cover a broad range of items listed in Annexes I and II. Section 338 of the Tariff Act of 1930 allows for a tariff of up to 50% to offset discrimination against U.S. Commerce, although it has never been used in this fashion.
The tariffs generally apply in addition to other duties and will cover listed goods even when they qualify under the U.S.-Mexico-Canada Agreement. Exceptions include energy, potash, products already subject to Section 232 tariffs and certain other goods, including some fish and critical minerals. The White House announced the tariffs via three presidential proclamations and an accompanying Fact Sheet.
USTR targets forced labor trade gaps with additional tariffs
The United States Trade Representative (USTR) concluded its Section 301 unfair trade practices investigations into the use of forced labor by 59 countries and the 27-member European Union. Based on the findings, USTR introduced tariffs of 10-12.5% on imports from:
- Five countries, including Canada, Ecuador, Indonesia, Mexico, Pakistan and the EU, received 10% tariffs because they failed to enforce prohibitions on forced labor.
- Fifty-four countries received 12.5% tariffs because they failed to impose and effectively enforce prohibitions on forced labor.
NAFEM opposes tariffs in pending act sanctioning Russia
The Lindsey O. Graham Sanctioning Russia Act of 2026 (S. 5025) would expand U.S. sanctions on Russia and countries that support its energy sector or help it evade existing restrictions. The bill also would authorize tariffs of up to 100% on goods from the five largest purchasers of Russian oil and natural gas and impose sanctions on Russian officials, banks, defense-related businesses, vessels and foreign entities that help Russia evade existing restrictions.
NAFEM joined 23 other associations in urging the U.S. Senate to remove the bill’s tariff authority. “Secondary sanctions can be a powerful tool … Tariffs are a blunt tool that can penalize law-abiding U.S. companies importing legitimate goods, invite retaliation, complicate trade negotiations and shift costs onto American families.”
U.S. imposes additional tariffs on Brazil
The USTR imposed an additional 25% tariff on most imports from Brazil under Section 301 of the Trade Act, effective July 22. This follows USTR’s investigation, which determined that certain Brazilian policies and practices unfairly burden or restrict U.S. commerce. Products already subject to Section 232 tariffs, including covered steel, aluminum, copper, vehicles, vehicle parts, certain wood products, heavy vehicles and semiconductors, are excluded.
USMCA negotiations underway
The U.S. declined to renew the United States – Mexico – Canada Agreement (USMCA) in its current form in July. The agreement remains in effect, including its preferential tariff rules, but the three countries have entered annual reviews as negotiations continue. During U.S.-Mexico talks in mid-July, officials discussed automobiles, steel and aluminum, economic security, labor, agriculture and electronic payment services. According to the USTR, negotiations are focusing on automotive rules of origin, North American supply-chain security, Chinese content and investment, agriculture, energy and enforcement. Canada is seeking to preserve stable, tariff-free market access.
NAFEM joined 22 other associations in encouraging USTR Ambassador Greer to support the prioritization of outcomes over a deadline. “These outcomes should include securing market access, addressing new actions taken by Canada and Mexico that harm American manufacturers, confronting unfair trade and investment practices, and rationalizing tariff structures to strengthen regional competitiveness.”
IEEPA Tariff refunds continue
Phase 2 of U.S. Customs and Border Protection’s (CBP) Consolidated Administration and Processing of Entries (CAPE) IEEPA refund process is open for entry types 01, 02 and 06 flagged for reconciliation. Phase 2 runs concurrent to Phase 1, which generally covers eligible unliquidated entries and entries within 80 days of liquidation.
Importers should confirm entry eligibility and monitor CBP guidance for additional phases. Recent Court of International Trade (CIT) orders may provide a refund path for certain older or finally liquidated entries, particularly for importers involved in pending litigation. Filing guidance is available on the CBP IEEPA Duty Refunds page.
USTR opens Vietnam investigation
The USTR opened a Section 301 investigation into Vietnam’s inadequate intellectual property protection and enforcement. USTR sought input by July 2 regarding acts, policies and practices related to a lack of adequate and effective protection of IP rights and the denial of fair and equitable market access to persons that rely on IP protection.