U.S. Further Revises 50% Section 338 Tariffs on Canadian Goods Effective October 30

The changes affect packaging materials, carpets, appliances, industrial equipment, and other manufactured goods.

At a glance

• The revised tariffs take effect October 30, 2026, at 12:01 a.m. Eastern Time
• Certain plywood, packaging materials, paper products, and machinery are being removed from the additional 50% duties
• New additions include carpets, personal care products, appliances, industrial components, and waste products
• Duties under the revised Section 338 motor vehicle-related list continue to apply in addition to applicable Section 232 tariffs
• Goods qualifying under CUSMA are not exempt from Section 338 duties when covered by the measures

The United States has announced further changes to its 50% Section 338 tariffs on Canadian goods, revising the list of products subject to the additional duties.

An October 23 presidential proclamation further amends Proclamation 11048, the motor vehicle-related Section 338 action. The announcement follows ⁠earlier revisions in September, which also changed the scope of products subject to the 50% duties.

The latest changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after October 30, 2026, at 12:01 a.m. Eastern Time.

Which Canadian products are being removed or added?

The proclamation removes certain products from the additional 50% duties while extending the tariffs to others.

Products being removed include:

• Certain thin plywood products
• Plastic packaging materials
• Certain paper and paperboard products
• Certain refrigeration equipment, packaging machinery, and industrial machinery
• Edible seaweed

Products being added include:

• Carpets, rugs, and other textile floor coverings
• Certain wood products, wooden packing boxes, and flooring materials
• Certain paper and paperboard products
• Personal care products
• Sweetened cocoa powder
• Certain paints, lubricants, plastics, and chemical preparations
• Window and wall air conditioners, chest freezers, and electric hand tools
• Certain hand-operated iron or steel valves, and waste products
• Medical and scientific equipment
• Certain recreational products

The complete lists of affected products and their Harmonized Tariff Schedule of the United States (HTSUS) classifications are available in ⁠Annex I of the proclamation.

Do Section 338 tariffs continue to stack with Section 232 duties?

Yes. Duties under the revised motor vehicle-related Section 338 tariff list continue to apply in addition to applicable Section 232 tariffs.

The changes also do not eliminate the existing 50% Section 338 tariff program. Products remaining within its scope continue to be subject to the additional duties.

Additionally, goods qualifying for preferential treatment under the Canada–United States–Mexico Agreement (CUSMA), known as USMCA in the United States, are not exempt from Section 338 duties when covered by the measures.

Review your tariff exposure before October 30

Cole International provides trade consulting and customs brokerage services to help Canadian businesses navigate changing tariff requirements and cross-border customs regulations.

Reach out to one of our trade professionals to review your tariff classifications, assess potential duty exposure, and prepare for the October 30 changes.