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Section 338 Tariffs on Canadian Products Make the Business Environment Less Certain

July 21, 2026

  • Carolyn Posner, CTA Director, Policy Communications

ARLINGTON, VA – July 21, 2026 – The following statement is attributed to Gary Shapiro, Executive Chair, Consumer Technology Association (CTA)®:

“The Administration's latest ‘Section 338’ tariff actions on Canadian products make the business environment less certain for businesses on both sides of the border. Eliminating carve outs for U.S.-Mexico-Canada Agreement (USMCA) qualifying goods also undermines efforts to renew a deal that keeps American business globally competitive.

There is still an off ramp. The ongoing USMCA review is an opportunity to resolve outstanding issues between the U.S. and Canada, including those cited in the Presidential Proclamations. Negotiators should prioritize scheduling formal U.S.-Canada talks to revive duty-free trade between all three countries and the long-term stability that drives investment, innovation and job creation.

Before the tariffs go into effect in August, the Office of the U.S. Trade Representative should provide a notice-and-comment process allowing stakeholders to give feedback on the impacts to American supply chains, investment and affordability. Congress should also reassert its Constitutional authority on trade policy, providing robust oversight of this new assertion of Executive power and calling for greater transparency in the Administration’s use of tariff authorities.”

About Consumer Technology Association (CTA)®:

As North America’s largest technology trade association, CTA is the tech sector. Our members are the world’s leading innovators – from startups to global brands – helping support more than 17 million American jobs. CTA owns and produces CES® – the most powerful tech event in the world. Find us at CTA.tech. Follow us @CTAtech.

Trade and Tariffs

International trade is vital to the consumer technology sector. Global supply chains are intricate and often take decades to develop. Unfair trade practices should be addressed at the World Trade Organization and with our global allies. Opening global markets, not closing them, spurs economic competitiveness.

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