50% Canada Tariffs: What Section 338 Means for Importers with Mollie Sitkowski

Host: Lalo Solorzano and Andy Shiles
Guest(s): Mollie Sitkowski
Published: July 22, 2026
Length: 20:54
Presented by: Global Training Center

Summary
A rarely used provision of the Tariff Act of 1930 is suddenly at the center of North American trade. In this timely episode, Lalo Solorzano and Andy Shiles welcome customs and international trade attorney Mollie Sitkowski to unpack the administration’s three Section 338 proclamations targeting specified Canadian goods. The measures announce additional 50% duties beginning August 19, 2026, across tariff lines connected to disputes involving alcoholic beverages, dairy, and motor vehicles.

Mollie explains why the product coverage is broader, and more complicated, than the three headline sectors suggest, how the new duties interact with Section 232 tariffs, and why USMCA qualification does not exempt covered imports. The conversation also explores whether Congress or the courts could intervene, the possibility that the tariffs are intended to bring Canada back to the negotiating table, and the implications for deeply integrated automotive supply chains.

Most importantly, the episode gives importers a practical response plan: review HTS classifications, recheck Canadian origin under 19 CFR Part 102, monitor CBP implementation guidance, model a 50% worst-case scenario, and coordinate immediately across compliance, sourcing, finance, legal, and government affairs. Whether the duties take effect as announced or change through negotiation, this is the preparation window companies cannot afford to waste.

Main Topic / Discussion
This episode examines the newly announced Section 338 tariffs on specified Canadian imports and what companies should do before the August 19 effective date. Mollie breaks down the legal authority, covered product categories, USMCA and Section 232 treatment, potential challenges, negotiation dynamics, and the immediate classification, origin, forecasting, and supply-chain work importers should begin.

Key Takeaways
• The additional 50% duty applies to specified HTS provisions, not automatically to every Canadian-origin product.

• USMCA qualification does not exempt covered goods, while articles already subject to Section 232 duties are excluded from the new Section 338 duties.

• Importers should validate tariff classifications and country-of-origin determinations, including the application of 19 CFR Part 102, and closely monitor CBP CSMS guidance.

• Compliance, finance, sourcing, legal, customs brokers, and government affairs teams should jointly model the 50% worst-case impact and identify affected shipments, suppliers, contracts, and customers now.

Resources & Mentions
• Global Training Center

• White House Fact Sheet: Additional Tariffs on Canada

• Section 338 Proclamation: Alcoholic Beverages

• Section 338 Proclamation: Dairy

• Section 338 Proclamation: Motor Vehicles

• Mollie Sitkowski – Faegre Drinker

Credits
Host:
Lalo Solorzano

Andy Shiles

Guest(s):
Mollie Sitkowski - LinkedIn

Producer:
Lalo Solorzano

📢 Subscribe & Follow
Stay connected with the Simply Trade community and never miss an episode that helps you trade smarter.

🎧 Listen on:

• Apple Podcasts
• Spotify
• YouTube

💬 Connect with us:

• Simply Trade
• Global Training Center
• Trade Geeks Community

Don't forget to rate, review, and share with your fellow trade geeks!

Want to be on the show or have topic suggestions?
SimplyTrade@GlobalTrainingCenter.com