What the New 50% Tariff Means for Space Bear Bags

As of August 22, 2026, new U.S. tariffs have significantly increased the cost of importing many Canadian-made products into the United States — including Space Bear Bags.

We want to be as transparent as possible about what is happening, why customers are seeing these charges, and where that money is actually going.

What changed?

Space Bear Bags products are made in Canada and those made from 1.0oz DCF and 1.43oz DCF are classified under U.S. tariff code 4202.92.9700.

Under the new Section 338 action, products under this tariff classification are now subject to an additional 50% tariff when imported into the United States.

Unfortunately, that 50% tariff does not replace the normal U.S. import duty. It is charged on top of it.

For our products, the normal U.S. duty rate is 17.6%.

That means the current effective tariff on a Space Bear Bag entering the United States is:

• 17.6% base import duty
• 50% Section 338 tariff
• 67.6% total customs duty

What does that mean in actual dollars?

For a bag with a declared value of $30 USD:

Charge	Amount
Product value	$30.00
Base U.S. duty — 17.6%	$5.28
Section 338 tariff — 50%	$15.00
Total U.S. customs duty	$20.28

So a $30 product currently generates $20.28 in U.S. import duties before shipping, brokerage, or customs-processing fees are considered.

None of that $20.28 goes to Space Bear Bags.

It is collected as part of the U.S. import process.

But aren't Canadian goods covered by CUSMA/USMCA?

Yes — and this is where the new rules get particularly confusing.

Our qualifying Canadian-made products can still receive CUSMA/USMCA treatment, and that remains important because it protects them from the separate 10% Section 301 forced-labour tariff that would otherwise apply.

However, the new Section 338 rules require affected products to pay the normal U.S. general duty rate even when they otherwise qualify for USMCA preferential treatment.

So the current calculation is effectively:

17.6% base duty + 50% Section 338 + 0% Section 301 = 67.6% total duty

Without the USMCA exemption from Section 301, that rate could be even higher.

Why are we charging this at checkout?

Because we have to.

When we purchase postage for U.S. shipments, the applicable tariffs and import charges are assessed directly to us as the shipper. We cannot simply send the package and have U.S. Customs collect the duties from the customer later.

In other words, DDU/DAP shipping is not an available option for these shipments through our current shipping process. The duties have to be paid up front before the package can be sent.

That means we need to collect those tariff costs from U.S. customers at checkout so we can pay the charges when we buy the shipping label.

These charges are not additional revenue for Space Bear Bags. They are amounts we collect specifically to cover the U.S. import duties we are required to pay on the shipment.

We're still shipping to the United States

The United States has always been an important market for Space Bear Bags, and we have no intention of abandoning our U.S. customers.

We will continue doing everything we reasonably can to keep orders moving, keep costs transparent, and make sure customers receive the proper tariff treatment available under CUSMA/USMCA.

We are also continuing to monitor changes from U.S. Customs and Border Protection, since tariff rules can change quickly.

We sincerely appreciate everyone who continues to support a small Canadian manufacturer through what has become an unusually complicated trade environment.

Sorry, eh? 🇨🇦