PRINTING United Alliance addresses new tariffs on Canadian imports

By Stephanie Buka, Government Affairs Manager, PRINTING United Alliance

Recent trade actions by the Trump Administration could significantly affect the printing, packaging, and paper industries, which rely heavily on Canadian imports and integrated North American supply chains. 

On July 20, 2026, President Donald Trump invoked Section 338 of the Tariff Act of 1930 to impose new tariffs on a broad range of Canadian exports. The action was taken in response to what the Administration characterized as discriminatory Canadian trade measures affecting US alcoholic beverages, dairy products, and motor vehicles. The three presidential proclamations establish an additional 50% ad valorem duty on hundreds of Canadian products, effective August 19, 2026. 

In total, the proclamations affect 569 Harmonized Tariff Schedule (HTS) categories, representing nearly $24 billion in annual Canadian exports to the US, or approximately 5.5% of total Canadian import value.

Legal Authority 

Although Section 338 has existed since 1930, it has never been used to impose tariffs. A discrimination finding was made against Germany and Australia in 1935, but no retaliatory action followed, leaving the statute’s practical scope largely untested.  

The statute authorizes the President to impose retaliatory tariffs up to 50% ad valorem on imports from countries that discriminate against US commerce. It permits tariffs to take effect 30 days after they are proclaimed. Section 338 duties carry no statutory expiration date and remain active until explicitly modified or revoked. Section 338 is widely expected to be litigated in the US Court of International Trade (CIT). 

The Administration’s Rationale 

Alcohol: The Administration cited restrictions imposed by Canadian provinces and territories on US alcoholic beverages as evidence of discriminatory treatment. Because Canada did not impose comparable restrictions on alcoholic beverages from other countries, the Administration concluded that the measures placed US producers at an unfair disadvantage. 

Dairy: The Administration cited Canada’s administration of tariff-rate quotas (TRQs) for cheese and dairy as discriminatory toward US producers, stating Canada affords European Union (EU) suppliers preferential market access compared to US exporters under the United States-Mexico-Canada Agreement (USMCA). 

Motor Vehicles: President Trump’s proclamation pointed to Canada charging a tax on imports of US motor vehicles and parts that are not covered under USMCA. He argued it was “unreasonable” and that Canada has discriminated against the US by not charging other countries a similar tax.  

Additional information is available in the White House Fact Sheet. 

No USMCA Exemption 

Notably, covered products face the additional 50% tariff regardless of their USMCA origin status. While the tariffs apply regardless of USMCA eligibility, the Administration did establish several important exemptions and carve-outs. 

Section 232 Carve-Out  

Each proclamation carves out articles already subject to Section 232 tariffs (steel, aluminum, copper, autos and auto parts, raw lumber, semiconductors, patented pharmaceuticals and civil aircraft.)  

Specific Product Exclusions 

In addition to the Section 232 carve-out, the Section 338 tariffs do not apply to Canadian energy products, potash, fish, and certain critical minerals. 

Broad Scope 

Although the proclamations address disputes involving alcoholic beverages, dairy products, and motor vehicles, the resulting tariffs apply to a much broader range of Canadian goods. A detailed analysis from McMillan LLP identifies the affected HTS codes. 

Products Impacting the Paper and Printing Industries 

For the paper and printing industries, the tariffs affect several important product categories, including: 

• Bookbinding machinery 
• Coated paper and paperboard 
• Dissolving-grade chemical wood pulp 
• Packaging and converted paper products 
• Printed circuit boards 
• Printing and writing papers 
• Printing inks (not black, not solid) 
• Printing plates 
• Printing machinery and replacement parts 
• Specialty papers 
• Textile and apparel products 

Many print service providers rely on Canadian-made equipment, components, substrates, packaging materials, and other essential inputs. The tariffs could disrupt supply chains, raise material and equipment costs, prompt supplier price increases, extend lead times as sourcing strategies shift, and complicate planned capital investments. 

The potential effects are particularly significant for paper-based products. Canada is the largest supplier of paper and paperboard to the US, with imports totaling approximately $6.59 billion in 2025. This figure underscores the importance of maintaining reliable cross-border supply chains, a concern also shared by the American Forest & Paper Association (AF&PA).  

PRINTING United Alliance has been working with AF&PA regarding the Administration’s new tariffs on Canadian goods. In response to the announcement, AF&PA president and CEO Heidi Brock issued a statement outlining the potential impacts on North American supply chains, available here. 

Broader Trade Context 

The tariffs come as the United States, Canada, and Mexico continue the USMCA review process. The underlying disputes involving motor vehicles, provincial restrictions on US alcoholic beverages, and dairy market access could potentially be addressed through bilateral negotiations or the USMCA review.  

With the tariffs taking effect on August 19, the limited implementation window increases pressure on both governments to pursue a negotiated solution before significant supply chain disruptions occur. Canadian Prime Minister Mark Carney has indicated that Canada is prepared for intensive engagement, and US Trade Representative Jamieson Greer has confirmed that negotiations remain open. 

Conclusion 

Print service providers may want to review their supply chains for Canadian-sourced products, consult vendors about which materials and equipment are subject to the tariffs, and consider the potential effects on upcoming purchases and long-term contracts. Monitoring supplier prices and evaluating alternative sources may also help companies prepare for cost increases or disruptions. 

The Alliance will continue to actively monitor developments related to the Administration’s Section 338 actions, including forthcoming guidance from US Customs and Border Protection (CBP). The Alliance will provide updates as significant developments occur.

This story originally appeared here on the PRINTING United website.

About the author: Stephanie Buka is the Government Affairs Manager for PRINTING United Alliance. In this role, she supports Ford Bowers, CEO, the Government Affairs team, and coordinates efforts with contracted lobbying firm, ACG Advocacy.