50% Section 338 tariffs on Canadian goods take effect August 22 — CUSMA status won’t shield you

THREAT · Export Alberta · Cross-border trade

The United States’ new 50% duties under Section 338 of the Tariff Act of 1930 take effect August 22 at 12:01 a.m. ET, after a three-day presidential pause moved the original August 19 start date. The duties cover a broad set of Canadian goods — roughly US$20 billion worth, about 5% of Canada’s exports — with dairy, alcoholic beverages, wine, honey and cement among the targeted categories, according to trade compliance advisors at GHY International.

Two details matter most for Alberta exporters. First, CUSMA-qualifying status provides no exemption from these duties. Second, U.S. Customs calculates the duty based on the date a shipment is entered for consumption at the U.S. border, not the date it ships from Canada — a truck leaving Alberta on August 21 that clears after the deadline pays the full 50%.

What it means: If your products fall in or near the covered categories, this week’s job is confirming arrival timing with carriers and brokers, prioritizing shipments with confirmed pre-deadline entry, and holding anything with uncertain timing until the picture clears. It is also the strongest argument yet for building a market-diversification plan that doesn’t depend on a single border.