New 50% Section 338 Tariff on Canada — Critical Update for Jewelry Importers

On July 20, 2026, President Trump signed three proclamations imposing a new 50% tariff on many categories of Canadian goods under Section 338 of the Tariff Act of 1930 (Smoot-Hawley Tariff Act), effective August 19, 2026 at 12:01am ET. The administration cited "Canadian discrimination against U.S. commerce" in dairy, motor vehicles, and alcoholic beverages as justification.

Important: This 50% tariff stacks on top of all existing tariffs and applies even to goods that would otherwise qualify for USMCA duty-free treatment.

Jewelry Products Directly Affected

The following jewelry and precious metal product categories are specifically included under the Motor Vehicles-related proclamation and subject to the 50% tariff:

• 7102.39.00 — Nonindustrial diamonds, worked, but not mounted or set
• 7106.92.10 — Silver (semimanufactured, rectangular shapes, 99.5%+ silver)
• 7113.11.50 — Silver articles of jewelry and parts thereof, valued over $18 per dozen
• 7113.19.29 — Gold necklaces and neck chains (other than rope or mixed links)
• 7113.19.50 — Precious metal (other than silver) articles of jewelry and parts thereof
• 7117.19.90 — Imitation jewelry of base metal (other than toy jewelry)
• 7118.10.00 — Coins (other than gold coin), not being legal tender

Key Points for Importers

• The 50% tariff overrides USMCA — goods that previously entered duty-free from Canada are no longer exempt.
• This tariff stacks on top of any existing Section 301 or Section 122 tariffs already in effect.
• Effective date: August 19, 2026 — businesses have limited time to review incoming shipments.

What Should You Do?

• Immediately review any planned imports from Canada scheduled after August 19.
• Contact your customs broker to reassess duty liability on Canadian-origin jewelry and precious metal goods.
• Review supplier contracts that may need price renegotiation due to increased import costs.
• For ongoing updates, visit the JVC Tariff Tracker.

At Huiliu-Global, we are monitoring these developments closely to ensure our platform and partners remain fully compliant. If you have questions, please contact us at support@octaflow.com.

Source: Jewelers Vigilance Committee Member Alert, July 21, 2026.