Section 338 Tariffs Affect Canadian Exporters to US

The 50% tariff on U.S. alcohol in Saskatchewan is about more than trade policy. The bigger issue is market access. When tariffs are combined with retail delistings, the impact quickly moves from pricing to inventory, production planning and distribution. U.S. wineries may have to redirect products originally destined for Canada, creating new pressure and potentially new opportunities across domestic U.S. markets. For beverage companies, supply chain resilience increasingly means having flexible channels and markets, not simply diversified suppliers. https://lnkd.in/g28jGdwC

The United States will ban imports of a range of Canadian alcoholic beverages, motorcycles, and dairy products beginning Sept. 29, escalating an ongoing trade dispute between the two countries. https://lnkd.in/gkCr-aEn #DominicLeBlanc #DonaldTrump #MarkCarney #StephenBrown

The alcohol and beverage industry is navigating a period of significant regulatory change. Our latest alert explores several developments to watch, including the FTC's Robinson-Patman Act litigation against Southern Glazer's, new tariffs on certain Canadian alcohol imports, and proposed federal legislation that could fundamentally reshape the hemp-derived THC beverage market. Read the full analysis: https://lnkd.in/eG2cJZEP

The additional 50% duties became effective on August 22, 2026, potentially affecting alcoholic beverages, dairy products, motor vehicles, and other covered products. Organizations should be assessing exposure, validating tariff classifications, and evaluating available mitigation opportunities now. For many importers, the question is no longer if there is an impact, but how much. The graphic below summarizes the latest CBP guidance on the new Section 338 tariffs affecting certain Canadian products, including covered products, exclusions, USMCA considerations, and duty drawback eligibility. Every supply chain is different. If you'd like to discuss how these developments may impact your business, our Trade & Customs team is always happy to connect and explore potential mitigation opportunities. #KPMG #TradeAndCustoms #InternationalTrade #SupplyChain #Tariffs #USMCA

This video reports on the economic consequences of a new 50% #tariff on #CanadianSpirits imposed by the United States administration, a move that is being met with strong criticism from within the U.S. #liquorIndustry itself. Key takeaways from the video: -- Economic Carnage: Chris Swonger, president and CEO of the Distilled Spirits Council of the United States , characterizes the trade situation as "economic carnage" (1:07, 2:03). He notes that the U.S. #distilledSpirits industry has already lost 73% of its #exports due to retaliatory measures (0:02, 7:12). -- Broad Impact: The #tariffs are negatively affecting stakeholders across the entire supply chain, including #craftDistillers, #bartenders, #farmers, and #consumers in distilling-heavy states like Kentucky and Tennessee (1:22, 2:44-2:57). -- Industry Perspective: Swonger emphasizes that the industry thrived under #NAFTA and #USMCA with open markets and prefers to compete on " #sipAndTaste " rather than serving as leverage in broader trade disputes involving steel, aluminum, or dairy (3:35-3:58, 6:28)."

New guidance is available on the implementation of the July 20, 2026, Presidential Proclamations on Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages, Dairy, and Motor Vehicles. Read our latest guidance here (link in bio): https://lnkd.in/eYPg-uQf #successbyperformance #globallogistics #section338 #chb #imports #customs #cbp

The US–Canada trade dispute is escalating, with Washington set to ban several Canadian whey imports and Ottawa imposing tariffs on US dairy #ingredients. The measures add cost and sourcing uncertainty to an already tight whey market, potentially accelerating supplier diversification, inventory shifts, and reformulation across #beverages, bakery, and dairy. #foodnews #foodandbeverageindustry Reported by Joshua Poole. Read the full article here👉https://lnkd.in/ehdtZP4q

Regulatory Update! Canada countermeasures on $27.6 billion in products imported from the U.S. will be effective as of 12:01 a.m., September 8, 2026. Updated list of U.S. products subject to 50% counter tariffs effective September 8, 2026. https://lnkd.in/gegianyM

The 50% Canada tariff hit Friday. Most CEOs called their customs broker. The broker can tell you what you owe. He can't tell you the thing that actually matters: how fast can you change where you buy? Last week a procurement lead at a Canadian snack brand was comparing every organic ingredient to its conventional version, by hand, in a spreadsheet. Someone asked her what it would cost to switch. 4 days later the tariff made that question a lot more urgent. Same week, a sourcing lead at a beverage brand told us she's still clawing back hundreds of thousands in last year's tariffs while the new ones land. A contract manufacturer lost a citric acid supplier overnight with no backup. Here's the math nobody likes. Requalifying one organic or allergen-controlled ingredient takes 60 to 90 days at a mid-market food company. This tariff went from announced to effective in 33. The duty rate isn't the problem. The days until you can re-source is. And that number was set long before the proclamation. The 50% is temporary. Knowing your supplier base well enough to move it in a week isn't. #CPG #Procurement #SupplyChain #Tariffs

What is the HS code for essential oils? For most importers, the starting point is HS heading 3301. But knowing "3301" alone isn't always enough. Essential oils are classified under different subheadings depending on the type of oil. For example, citrus oils, mint oils and other essential oils have different classifications. For many non-citrus, non-mint Indian essential oils including lemongrass, citronella, vetiver and palmarosa, the relevant subheading is typically 3301.29 ("other essential oils"). Why does this matter? → Import duty is linked to tariff classification. → Classification can affect regulatory requirements. → Consistent documentation can help avoid customs delays. One important point for importers: the six-digit HS code is the international root, but individual countries can add further digits to create their national tariff line. So before importing, don't rely solely on a generic HS code. Confirm the exact classification applicable in your destination market with your customs broker. We've put together a complete guide explaining HS 3301 and the classifications importers should understand. Read the full guide below. https://lnkd.in/gUhpfwwg #EssentialOils #HSCode #ImportExport #Customs #TrinayOverseas