What Changed
On October 23, 2026, the President signed a proclamation that further modifies the list of Canadian products subject to the additional duties the U.S. imposed under Section 338 of the Tariff Act of 1930. These duties were first proclaimed on July 20, 2026, and their scope was already changed once, on September 8. The White House describes this round as a refinement meant to keep offsetting what it calls Canada's discriminatory treatment of U.S. commerce while better serving the public interest.
The change takes effect at 12:01 a.m. Eastern Time on October 30, 2026. It applies to goods entered for consumption in the U.S., or withdrawn from a U.S. warehouse for consumption, on or after that time. The changes are set out in Annex I of the proclamation: Part A removes 22 U.S. tariff lines from the duty and Part B adds 100.
What's Coming Off the List
The White House summarizes the removals as plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes. Examples from Annex I, Part A (U.S. tariff numbers):
- Corrugated paper or paperboard cartons and boxes (4819.10.00)
- Plastic boxes and cases (3923.10.90) and plastic sacks and bags of ethylene polymers (3923.21.00)
- Plywood under several lines of 4412.33 and 4412.34
- Certain refrigeration equipment (8418.69.01) and some packing and agricultural machinery (8422.30.91, 8422.40.91, 8433.60.00)
Not every packing box comes off. Corrugated cartons do, but wooden packing cases are being added (see below).
What's Going On the List
The White House lists certain valves, carpets and waste products among the additions. Examples from Annex I, Part B (U.S. tariff numbers):
- Carpets and other textile floor coverings (dozens of lines in 5701 to 5705), plus vinyl floor coverings (3918.10.20) and rubber floor mats (4016.91.00)
- Shampoo (3305.10.00)
- Chest freezers (8418.30.00) and window or wall air conditioners (8415.10.30)
- Certain valves (8481.80.30) and handheld power tools (8467.29.00)
- Wooden packing cases, boxes and crates (4415.10.30)
- Paints and mastics (3208.20.00, 3214.10.00), diagnostic reagents (3822 lines) and certain waste products (3825 lines)
- Sweetened cocoa powder (several 1806.10 lines)
These are examples, not the full list. Check every product against Annex I itself.
What Didn't Change
- The rate: covered goods still pay an additional 50% ad valorem duty
- CUSMA (USMCA): the duty applies to covered goods whether or not they originate under the agreement
- Other U.S. duties: the White House says the Section 338 duties apply in addition to Section 232 tariffs. CBP's earlier guidance also kept a 0% Section 338 provision for certain categories, such as some steel, aluminum and copper derivatives, vehicles and parts, so how the two interact depends on the product
- Canada's side: this is a U.S. measure. It doesn't change Canada's surtaxes on U.S. goods
What to Check Before October 30
- Check every product's U.S. tariff number (HTSUS) against Annex I, Parts A and B. The tariff numbers control, not the product descriptions
- Look at timing: the duty depends on when goods are entered into the U.S. (or leave a U.S. warehouse), not when they left Canada. Goods arriving on or after October 30 follow the new list
- Talk to your U.S. buyers about who pays the duty under your contracts and Incoterms, and whether prices need to change, in either direction
- Ask the right broker: U.S. entries are filed by a U.S. customs broker or the U.S. importer. CBP's guidance names TradeRemedy@cbp.dhs.gov for Section 338 filing questions
- Keep records of tariff classification, origin and entry dates in case a classification is questioned later
Where Garden City Fits
Garden City Customs Services Inc. clears goods into Canada. The Section 338 duty is assessed by U.S. Customs and Border Protection on goods entering the U.S., so the U.S. entry itself is handled by your U.S. customs broker or importer.
If you move goods both ways, we can help with the Canadian side: imports, Canada's surtaxes on U.S. goods, and duty relief such as the surtax remission order. Contact our team with your tariff numbers and we'll tell you what applies on the Canadian side.
Frequently asked questions
Does CUSMA (USMCA) qualification exempt my goods from the Section 338 duty?
No. The White House says the duty applies to all covered goods whether or not they originate under CUSMA (USMCA).
My goods ship before October 30 but arrive after. Which list applies?
The change applies by the date goods are entered for consumption in the U.S. (or withdrawn from a U.S. warehouse), not the shipping date. Goods entered on or after 12:01 a.m. Eastern on October 30, 2026 follow the new list. Confirm the treatment of a specific entry with your U.S. customs broker.
Does this change Canada's surtaxes on U.S. goods?
No. This is a U.S. measure. Canada's surtaxes on U.S. goods are set separately by Canada; see our update on Canada's surtaxes on U.S. goods.
Can Garden City file the U.S. entry?
No. We're a Canadian customs broker and clear goods into Canada. U.S. entries are filed by a U.S. customs broker or the U.S. importer.
Official sources
- White House fact sheet: further modifications to Canadian products subject to Section 338 tariffs (Oct 23, 2026)
- White House: proclamation further modifying the scope of Canadian products subject to Section 338 duties (Oct 23, 2026), including Annex I
- U.S. CBP CSMS #69851916: Section 338 additional duties on certain goods of Canada (Sept 11, 2026)
- Trade Commissioner Service: current U.S. tariff measures
This update is general information, not legal advice. Tariff measures change often; the official source is the authority, and how a measure applies depends on your specific goods, so confirm with a licensed customs broker before you ship.