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. Our 1.0 oz and 1.43 oz DCF products are classified under U.S. tariff code 4202.92.9700, while our Hybrid DCF products are classified under 4202.92.9100.

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

Our products qualify for preferential treatment under CUSMA/USMCA, which means the normal U.S. base import duty does not apply.

As a result, the current tariff calculation for a qualifying Space Bear Bags product is:

• 0% base import duty under CUSMA/USMCA
• 0% Section 301 tariff
• 50% Section 338 tariff
• 50% 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 under CUSMA	$0.00
Section 301 tariff	$0.00
Section 338 tariff — 50%	$15.00
Total U.S. customs duty	$15.00

So a $30 product currently generates $15.00 USD in U.S. import tariffs before shipping, brokerage, or customs-processing fees are considered.

None of that $15 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. Our qualifying products are made in Canada and eligible for preferential treatment under CUSMA/USMCA.

That preferential treatment still matters. It means our products are exempt from the normal 17.6% U.S. import duty, and they are also exempt from the additional 10% Section 301 tariff.

The new Section 338 tariff is different. It applies even to qualifying Canadian goods that receive CUSMA/USMCA treatment.

So while CUSMA continues to eliminate the other applicable duties, it does not eliminate the new 50% Section 338 tariff.

For a qualifying Space Bear Bags product, the current tariff calculation is therefore:

0% normal import duty + 0% Section 301 tariff + 50% Section 338 tariff = 50% total tariff

In short: CUSMA is still working — it just does not provide an exemption from Section 338.

Why are we charging this at checkout?

Because the tariff has to be paid as part of our shipping process.

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 through our current shipping service.

In other words, DDU/DAP shipping is not available 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 purchase 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 tariff 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? 🇨🇦