The U.S. trade landscape continues to shift following the Supreme Court decision invalidating the IEEPA tariffs and the Trump administration’s rollout of additional tariffs pursuant to Section 338 of the Tariff Act of 1930, Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962. Key recent developments include:
- The President signed three proclamations imposing duties on certain imports from Canada;
- The IEEPA tariff refund process and litigation concerning “finally liquidated entries” continue;
- The Department of Justice and Department of Homeland Security Trade Fraud Task Force have released a guide detailing their trade fraud enforcement strategy; and
- Section 232 investigations have expanded into additional strategic sectors, including aerospace and coal.
Section 338 Tariffs on Canada
On July 20, 2026, President Trump issued three proclamations imposing 50% tariffs on approximately $20 billion worth of Canadian goods imported into the U.S. The additional tariffs take effect in 30 days, on August 19. To enact these tariffs, the administration, for the first time since its enactment, is using Section 338 of the Trade Act of 1930 (the Act), part of the Smoot-Hawley Act. Section 338 permits offsetting “the burden or disadvantage from a foreign country's discrimination against or unequal imposition on the commerce of the United States.” The three proclamations are based on claims of Canadian discrimination against alcoholic beverages, dairy, and motor vehicles.
Each proclamation imposes duties on a separate list of products intended to serve as offsets pursuan to the Act. Importantly, the Section 338 duties will stack on top of any general duties, antidumping or countervailing duty measures and Section 301 tariffs. USMCA compliant goods will not be exempt; however, products that are subject to Section 232 duties will be exempt from the Section 338 duties.
The following lists the product categories covered by the proclamations:
- The Automobile proclamation covers the broadest range of products, including flowers, seeds, essential oils, cosmetics, industrial fatty acids and alcohols, chemicals, table and kitchenware, gaskets not for use in automotive goods, hides, veneer sheets, wood moldings, MDF for construction of certain dimensions, plywoods, veneered lumbers, fabrics of synthetic fibers, and textile products.
- The Alcoholic Beverages proclamation is narrower, covering alcoholic beverages and other goods, including wooden tableware and kitchenware, baskets, paper, and paperboard.
- The Dairy proclamation is largely limited to dairy products and derivative products, as well as nonalcoholic beer and molasses.
Given the ongoing USMCA negotiations and 30-day period before the tariffs take effect, changes to the announced duties may occur before the tariffs take effect.
IEEPA Refund Process
While Phases 1 and 2 of the IEEPA refund process remain open for submissions, the question of refunds for entries liquidated beyond 80 days remains pending before the U.S. Court of International Trade (CIT) and the Court of Appeals for the Federal Circuit (CAFC). On July 15, Judge Richard Eaton indicated that the court would issue an order directing U.S. Customs and Border Protection to reliquidate “certain finally liquidated entries” covered under the approximately 3,700 pending IEEPA-related cases in connection with the launch of CAPE Phase 3. Judge Eaton also ordered the government to file a CAPE progress report by Aug. 4, and scheduled a closed settlement conference for Aug. 5.
CBP announced its status to date regarding IEEPA refunds as of July 10: approximately $121.75 billion in refund claims has entered the agency’s refund processing system, with approximately $86.3 billion already cleared for payment. CBP has received more than 229,000 refund applications covering approximately 24.4 million import entries.
Trade Fraud Task Force Releases Strategy Guide
According to a July 14 press release, the DOJ is creating a new trade section within its National Fraud Enforcement Division to address trade fraud. The joint DOJ/DHS Trade Fraud Task Force, which began operating in August 2025, also released a resource guide covering the entry process and the civil and criminal statutes used in trade fraud enforcement. The guide also details “critical information to enterprises of all sizes and addresses a wide variety of topics, including who and what is covered by customs regulations and anti-trade fraud laws and the different types of civil and criminal resolutions available in trade fraud enforcement.”
Given the continued focus by both DOJ and DHS on trade fraud enforcement, importers may wish to review their compliance procedures and practices.
Section 232 Developments Across Multiple Strategic Sectors
The Trump administration continues to broaden its use of Section 232 across a growing range of industries.
Most recently, President Trump concluded the Section 232 investigation involving commercial aircraft, jet engines, and related parts. Although the determination was that the imports threaten U.S. national security, the president directed a 180-day negotiation period with foreign governments and industry stakeholders, leaving open the possibility of future agreements, import restraints, or tariffs if negotiations do not produce satisfactory outcomes.
The administration has also launched a new Section 232 investigation into imports of coal and coal-derived products, extending national security scrutiny further into the energy and critical industrial input sectors. This investigation follows a series of prior Section 232 actions and investigations involving steel, aluminum, copper, automobiles, semiconductors, pharmaceuticals, timber and wood products, and other strategically significant supply chains.
Takeaways
While CBP continues to process IEEPA refunds for unliquidated entries and entries within 80 days post-liquidation, the litigation before the CIT and CAFC continues to determine the refund status and process for entries liquidated outside the 80-day window. More broadly, the tariff landscape remains highly dynamic. The administration has continued to expand its use of Section 232 investigations into strategic sectors, while simultaneously implementing new Section 301 tariffs on Brazil and advancing additional Section 301 investigations involving forced labor and global manufacturing overcapacity. These developments reflect an increasing focus on sector-specific and country-specific trade actions tied to supply chain resilience, industrial policy, and national security.
Looking ahead, several near-term developments warrant monitoring. The 150-day period for the administration’s Section 122 tariffs expires on July 24, 2026, raising questions about whether the administration will seek to extend or replace those measures through other trade authorities. USTR recently held hearings and received comments in pending Section 301 investigations concerning forced labor practices and global manufacturing overcapacity, which may signal additional tariff announcements shortly. Against this backdrop, companies may wish to evaluate supply chains, sourcing strategies, pricing assumptions, contractual protections, and tariff-mitigation opportunities.