Section 338 Tariff Update – Shipping Cut-Off, August 17

The current situation

As of today, we have not received any further updates or confirmation of a change to the currently scheduled August 19, 2026 implementation date.

With the effective date now only two days away, we are preparing on the basis that the announced Section 338 measures will take effect as scheduled.

Starting August 19, certain goods of Canadian origin entering the United States will be subject to an additional 50% tariff, on top of other applicable duties, tariffs, taxes and fees.

Should there be any change to the August 19 implementation, we will communicate it as soon as possible.

Check Whether Your Products Are Affected

As shared in our previous communication, the Section 338 measures cover hundreds of HTS classifications.

View the Full Section 338 Impacted HTS Code List

If your product's HTS code appears on the list and the applicable country of origin is Canada, your shipment may be subject to the additional 50% tariff beginning August 19.

Shipping Cut-Off: End of Day Today, August 17

If you are shipping potentially affected goods, we recommend purchasing your labels and handing over your shipments to Stallion by end of day today, August 17.

This applies to both Stallion drop-offs and pickups.

This cut-off is intended to give affected shipments the best opportunity to cross the U.S. border before the new tariff takes effect. It is not a guarantee, as transit, customs processing and border clearance times may vary.

You may continue shipping after today. However, affected shipments crossing the border after the tariff takes effect may be subject to the additional 50% duty.

Important: Previously Purchased Labels

Purchasing a label before August 19 does not lock in the current tariff treatment.

If the additional Section 338 tariff was not collected when your label was purchased but becomes applicable to the shipment, the additional duty will be charged back to your Stallion account as an adjustment once we receive the final amount from our customs broker.

This also applies to affected labels purchased between now and the time our system is updated to automatically collect the new Section 338 duty.

What Happens Next?

Once the new duty takes effect and our system update is live, the applicable Section 338 duty will automatically be calculated and displayed during rate shopping and label creation.

We will send another update confirming when this is live.

We will also continue monitoring developments and will communicate immediately if there is any change to the scheduled August 19 implementation.

Thank you.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.