New 50% US Tariffs On Canadian Goods Create Cross-Border Seller Uncertainty
Canadian online sellers face another round of cross-border uncertainty as the United States prepares to impose a 50% tariff on specified Canadian goods beginning August 19.
President Donald Trump signed three proclamations July 20 targeting products tied to disputes over Canadian treatment of US auto, alcohol and dairy exports, but the affected goods extend far beyond those categories.
The tariffs use Section 338 of the Tariff Act of 1930, a rarely invoked provision allowing duties of up to 50% when another country is found to disadvantage US commerce.
Proclamations
The White House says the lists cover products ranging from wine to hockey sticks and cement. The classifications also include selected apparel, handbags, furniture, toys, video game equipment, sporting goods, household products, art, antiques, stamps and collectors’ pieces.
The additional 50% duty applies to covered products even when they would otherwise qualify for preferential treatment under the United States-Mexico-Canada Agreement.
Goods already subject to Section 232 tariffs are generally excluded from the new Section 338 charge, while energy, potash, fish, critical minerals and some other products are also exempt.
For online sellers, the result will depend on the item’s country of origin and exact Harmonized Tariff Schedule classification.
A product does not become Canadian-origin simply because it's sold or shipped by someone in Canada. For example, a Japanese-pressed record, US-made guitar or Chinese-manufactured toy generally retains its original country of origin unless it was substantially transformed in Canada.
A Canadian-made product falling under one of the listed classifications could face the additional 50% duty whether it is sold by a large retailer, small marketplace business or individual seller.
Used goods are not automatically exempt. A vintage Canadian-made jacket, antique or collectible can retain Canadian origin and remain subject to the tariff if its classification appears on one of the lists.
The new tariffs are already causing confusion. In a discussion on eBay Canada’s community forum, sellers questioned whether CUSMA status would continue to protect their products, how duties would be collected and whether US buyers would keep purchasing once the additional charges were added.
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One seller dealing in numismatics noted that a classification used for some coins appears on the tariff list and asked whether registering the items as CUSMA-compliant would make a difference.
Under the proclamations, preferential trade treatment does not remove the additional Section 338 duty from covered goods.
Other sellers raised concerns about customs delays, brokerage costs and losing access to US buyers. Those issues extend beyond eBay because customs treatment does not change based on whether a sale occurs through a marketplace, independent website or social media.
How and when the duty reaches the buyer will still vary by platform and shipping service.
For eligible orders moving through eBay International Shipping, Canadian sellers send the package to eBay’s domestic hub and eBay handles customs and international delivery from that point forward.
eBay handles the customs process and gives buyers the opportunity to pay applicable import fees at checkout. However, eBay currently excludes stamps, coins and paper money from the Canadian program, meaning sellers in those categories may still need to arrange their own cross-border shipping.
The company has not yet issued guidance specifically addressing the new 50% tariffs, and sellers remain responsible for providing accurate country-of-origin and product information.
Orders shipped directly by sellers fall outside that process and depend on the carrier or cross-border provider, including orders sold through other platforms.
Canada Post requires every US-bound parcel to be assessed through Zonos and assigned a Declaration ID before it will issue a shipping label. For shipments under US$800, any applicable duties must be prepaid.
Liz Morton
Business customers can connect a Zonos account to Canada Post Snap Ship or Shipping Manager, while other users can pay through the Zonos Prepay app before creating the label.
The sender remains responsible for the duty unless it has already been collected from the buyer. The amount can be paid through the Prepay app or billed through a verified Zonos account.
Stallion Express has opened a page for 2026 US tariff updates but has not published specific instructions for the August 19 action.
The company has previously promoted Delivered Duty Paid shipping, which calculates and collects import costs before delivery, but has not explained how the new Section 338 duties will be applied or displayed to sellers.
Sellers using Stallion or another cross-border provider will need to confirm how the service is calculating the new duties before shipping covered goods.
Coverage varies even within broad product categories. Canadian-origin vinyl records and most musical instruments do not appear on the lists, while CDs and other recorded optical media may fall under covered classifications.
Broad descriptions such as “collectible,” “toy” or “clothing” are not enough to determine whether an item is covered. The result depends on its country of origin and exact customs classification, including details such as material and construction.
That presents a challenge for casual and small-business sellers who have rarely needed to identify an eight-digit customs code. Marketplace categories are not interchangeable with customs classifications, and incorrect information could lead to unnecessary charges, border delays or reassessment.
The Section 338 tariffs arrive alongside a separate 10% Section 301 tariff on Canadian goods that took effect July 24, with exemptions for specified products.
The two actions use different product lists and rules, meaning an item could be covered by one, both or neither.
The 50% tariffs are scheduled to take effect at 12:01 a.m. Eastern on August 19, although the proclamations allow the administration to modify, suspend or terminate the action.
Negotiations between the US and Canada could still change the outcome before then.
For now, sellers will need to determine an item’s country of origin and customs classification, then confirm whether their marketplace or shipping provider is prepared to calculate and collect the correct duty.
