Section 338 Tariff
A tariff of up to 50% imposed under Section 338 of the Tariff Act of 1930 against a country found to discriminate against U.S. commerce — unused since 1949 until its 2026 revival against Canada.
Section 338 lets the president impose a tariff of up to 50% on goods from any country the U.S. determines is discriminating against American commerce, without the months-long investigation Section 301 requires or the 150-day cap Section 122 carries. It comes from the Tariff Act of 1930 — the same era as the Smoot-Hawley tariffs — and had not been invoked since 1949 until three Presidential Proclamations (11046, 11047, 11048) used it against Canada on July 20, 2026, covering alcoholic beverages, dairy, and a broad “Motor Vehicles” category that also includes lumber, building materials, and furniture.
Section 338 became one of the administration’s go-to tools after the U.S. Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in February 2026, ruling that IEEPA didn’t clearly delegate tariff-setting power to the president. Section 338, along with Section 122 and Section 301, doesn’t depend on IEEPA and survived that ruling intact.
See what the U.S.-Canada trade war means for household debt for how the current Section 338 tariffs on Canada affect household budgets, and Section 338 vs. Section 232 vs. reciprocal tariffs for how it differs from the other tariff authorities currently in use.
Frequently asked
What law actually authorizes a Section 338 tariff?
Section 338 of the Tariff Act of 1930, a Depression-era statute that lets the president impose duties of up to 50% on goods from a country found to discriminate against U.S. commerce. It went unused for over 75 years before the administration invoked it against Canada in July 2026.
— US Debt Compass Editorial Team
Is a Section 338 tariff the same thing as an IEEPA "reciprocal tariff"?
No. IEEPA reciprocal tariffs were struck down by the U.S. Supreme Court in February 2026 for exceeding the president's emergency-powers authority. Section 338, along with Sections 122, 301, and 232, is one of the statutory tools the administration turned to afterward because it runs on its own, separate legal basis.
— US Debt Compass Editorial Team