Scope of 50% Section 338 Tariffs on Certain Canadian Products Revised as of October 30

13 November 2026

On October 23, 2026, President Trump issued a proclamation further revising the Canadian products subject to the additional 50% ad valorem duties imposed under Section 338 of the Tariff Act of 1930. The action amends Proclamation 11048, issued on July 20, 2026 and first modified on September 8. According to a White House fact sheet, the new proclamation removes 22 HTSUS (Harmonized Tariff Schedule of the United States) lines and adds 100, effective for goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 a.m. Eastern time on October 30, 2026.

For importers, the immediate consideration is whether the HTSUS classification of a product imported from Canada is included in the revised scope. Importantly, the White House fact sheet reaffirms that the Section 338 tariffs apply to covered goods regardless of whether the goods qualify as originating under the United States-Mexico-Canada Agreement (USMCA). Accordingly, USMCA-originating status does not, by itself, exempt an otherwise covered Canadian product from the additional Section 338 duty. In addition, the proclamation provides that the duty stacks with the Section 232 tariffs imposed under the Trade Expansion Act of 1962. Classification, entry timing and potential tariff stacking should therefore be reviewed before October 30.

 

Background
The Section 338 duties on specified Canadian goods were imposed through three presidential proclamations issued July 20, 2026, addressing alleged Canadian discriminatory policies relating to alcoholic beverages, dairy, and motor vehicles. The additional duties took effect on August 27, following a three-day suspension of the effective date after trade negotiations between the U.S. and Canada broke down.

On September 8, following Canada’s imposition of retaliatory tariffs on U.S. goods, the President issued five more Section 338 proclamations. Two of those proclamations, Proclamations 11064 and 11065 revised the products (alcoholic beverage and motor vehicles, respectively) subject to the 50% additional duties, effective September 15. The other three proclamations barred the importation of specified Canadian alcoholic beverages, dairy-related products, and certain motorcycles, effective September 29, 2026. The prohibitions apply to specified products by HTSUS code rather than to all goods in those broader categories. The October 23 proclamation modifies Proclamation 11048, as previously amended, by removing certain HTSUS product codes and adding others to the scope of the Section 338 duties. 

 

What the October 23 Proclamation Changes
The new proclamation changes only subdivision (b)(3) of U.S. note 51 to subchapter III of Chapter 99 of the HTSUS — the product list associated with heading 9903.03.14. Annex I identifies the affected HTSUS provisions and Annex II makes the conforming tariff-schedule amendments.

• Removals (Annex I, Part A) — 22 HTSUS lines: Products removed from the 50% duty include certain plastic film, boxes and bags (3920.20.00, 3923.10.90, 3923.21.00); certain plywood sheets (4412.33 and 4412.34 lines); certain plastic-coated paper and paperboard; corrugated cartons and boxes; paper pulp articles (4811.51, 4819, and 4823 lines); and certain refrigerating, temperature-treatment, filling, packing, and agricultural produce machinery (8418.69.01, 8419.89.95, 8422.30.91, 8422.40.91, and 8433.60.00); and
• Additions (Annex I, Part B) — 100 HTSUS lines: Newly-covered products subject to the additional 50% duty include certain paints, mastics, shampoos, soaps, lubricants, and waxes (Chapters 32 through 34); reagents, certain plastics, and waste products (Chapters 38 and 39); certain wood panels, crates, and paper products (Chapters 44 and 48); carpets and other floor coverings (Chapters 39, 40, and 57); and certain air conditioners (8415.10.30), chest-type freezers (8418.30.00), power tools (8467.29.00), valves (8481.80.30), and other equipment.

Tariff classification precision is critical, even within a single heading. For example, HTSUS 8418.69.01 (other refrigerating or freezing equipment) is removed, while HTSUS 8418.30.00 (chest-type freezers) is added. The Annexes state that product descriptions are for information purposes only; the HTSUS provisions control and any questions concerning applicability should be directed to CBP.

 

Timing and Entry Considerations
The revised list of covered HTSUS codes turns on the date goods are entered for consumption or withdrawn from a warehouse for consumption — not on the shipment date. Importers should review Canadian goods in transit, in bonded warehouses and scheduled for entry around October 30 against the product list applicable on the entry date. They should also monitor CBP’s Cargo Systems Messaging Service for implementing instructions and confirm the correct sequence for reporting applicable Chapter 99 provisions.

 

Our Perspective
Before the revised lists take effect on October 30, importers of Canadian goods should re-screen their product master data against Annexes I and II, focusing on both newly-covered products and those removed from scope. They should validate classifications, identify entries that may be affected by the transition date, quantify any cumulative Section 338 and Section 122 exposure, and evaluate duty drawback for newly covered merchandise that may be re-exported or destroyed.

This is the second product list revision since the duties took effect. Because Section 338 permits the president to suspend, revoke, supplement, or amend a proclamation when the public interest requires (without any notice and comment period), companies should build recurring HTSUS screening and change-management controls into their Canada import compliance processes.

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