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US expands Section 338 tariff scope on Canada from September 15; sulfur stays exempt

122 HTSUS classifications newly covered. Elemental sulfur HS 2503 remains off prior USTR and Finance Canada lists.

Formed sulfur piled at a Pacific bulk terminal under a dark sky
Formed sulfur at a Pacific bulk terminal, the visual of Alberta tonnes waiting on the Vancouver stem. Sulfur Wire · Original

SMM reported September 12 that the US-Canada tariff exchange escalated again after Ottawa imposed retaliatory tariffs on approximately 20 billion dollars of US goods.

Washington responded with a 50 percent tariff on about 100 additional Canadian product categories effective September 15.

Import prohibitions on certain Canadian motor vehicles and dairy products are scheduled from September 29.

Open trade counsel from Osler and World Trade Scanner puts the September 15 modification at 122 newly covered HTSUS classifications under headings 9903.03.12 and 9903.03.14.

Eleven classifications are removed from scope while the base 50 percent Section 338 rate on goods already in scope since August 22 continues.

Fertilizer Daily and prior USTR disclosures keep elemental sulfur, HS 2503, sulfuric acid, potash, energy, and critical minerals off the covered lists.

Canada remains the dominant US import source for recovered sulfur per USGS import-source tables.

Alberta forming plants and the Vancouver stem therefore watch list text even as the broader North American trade fight widens.

The September 15 expansion adds steel derivatives, wood products, semiconductors, and patented pharmaceuticals to the 338 regime per open counsel notes.

Goods subject to both Section 232 and Section 338 duties may face stacked rates on certain aluminum and steel classifications from September 15.

No exemption applies for USMCA-originating goods on newly covered lines, a screening detail for cross-border shippers ahead of the effective date.

Ottawa's September 8 retaliation table already kept HS 2503 at free on the Canadian side of the border.

Desk read: September 15 widens the trade war without pulling sulfur into the tariff lists yet. Alberta inventory and Vancouver exports still move on freight and Hormuz math, not Section 338 line changes.

Vancouver sulfur destinations, 2025 kt China 1296 Australia 597 Other / un 563 Indonesia 371 US 302 Cuba 215 VFPA Statistics Overview (verified_public)
Vancouver sulfur destinations, 2025 VFPA Statistics Overview (verified_public)