No refund exists today. The tariffs are in effect and no court has ruled on them. But this is the first use of Section 338 in the statute's history, legal scholars have published detailed arguments that the action exceeds the law, and trade counsel widely expect a court challenge. Importers who paid the IEEPA and Section 122 tariffs learned the pattern: when a tariff falls, the importers who documented their entries and preserved their claims are positioned first.
What happened
On July 20, 2026, the administration signed three proclamations invoking Section 338 of the Tariff Act of 1930, a provision that had never before been used to impose tariffs. The proclamations add a 50 percent duty on selected Canadian imports, principally motor vehicles, alcoholic beverages, and dairy products, citing discriminatory Canadian policies toward U.S. commerce. The duties were originally set for August 19, were suspended for three days, and took effect August 22, 2026.
The legal questions already on the table
No lawsuit has been filed as of this writing, but the legal groundwork is visible. Trade scholars, including Georgetown Law's Peter Harrell and Jennifer Hillman writing in early August, argue there are strong grounds to challenge the action: the International Trade Commission never conducted an investigation of Canada before the President acted, the products targeted bear little relationship to the Canadian policies cited, and later statutes arguably superseded Section 338 entirely. Trade counsel across the industry expect the question to be tested at the Court of International Trade.
That is an argument, not a ruling. Courts may uphold these tariffs. But the same was said of IEEPA before the Supreme Court struck those tariffs down in February, and of Section 122 before the trade court ruled against it in May.
What importers should do now
1. Identify every entry paying the Section 338 duty and keep your ACE records complete. If a court later orders relief, entry-level documentation is what a claim is built on.
2. Track liquidation dates as entries begin to liquidate, since administrative deadlines run from liquidation.
3. Watch the docket. If a challenge is filed and succeeds, recent history says relief will favor importers who acted rather than waited.
Free exposure review. We quantify what the 50 percent duties are costing you, map your entries, and set up claim preservation so you are ready the day the legal landscape moves. Contingency basis, no upfront fees.
Start your exposure reviewRelated: refund status for every tariff program. This page is general information, not legal advice.