Effective October 30, 2026, the United States has modified the list of Canadian products subject to an additional 50% tariff under Section 338 of the Tariff Act of 1930. The latest change adds 100 HTSUS classifications to the tariff while removing 22 classifications from its scope.
On October 23, 2026, the White House issued a proclamation further modifying the products covered by Section 338 tariffs imposed on certain goods from Canada. The changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 30, 2026.
Background on Section 338 tariffs
Section 338 of the Tariff Act of 1930 allows the U.S. president, under specified circumstances, to impose additional duties of up to 50% ad valorem when a foreign country discriminates against U.S. commerce in a manner that places it at a disadvantage. The law also allows the president to suspend, revoke, supplement or amend measures imposed under Section 338 when deemed necessary in the public interest.
In July 2026, the U.S. administration invoked Section 338 in connection with what it characterized as discriminatory Canadian treatment of U.S. commerce, including Canada’s motor vehicle tariff scheme. The additional 50% duties were initially scheduled to take effect August 19 but were temporarily suspended for three days. They subsequently took effect at 12:01 a.m. Eastern Time on August 22, 2026.
The scope of affected Canadian products was modified again in September. The October 23 proclamation titled ‘Further modifying the scope of products of Canada subject to the additional duties imposed to offset Canadian discrimination against the commerce of the United States with respect to motor vehicles’ represents a further adjustment to the list of goods covered by the additional duties.
What changed October 30?
Effective October 30, the U.S. has revised the products covered under HTSUS 9903.03.14.
Most notably, 100 additional HTSUS classifications are now subject to the 50% additional Section 338 duty. CBP has also identified 22 HTSUS classifications that are no longer subject to the additional duty under 9903.03.14.
The newly covered products span a broad range of categories, including:
- sweetened cocoa powder;
- paints, varnishes, putties and mastics;
- shampoo;
- soaps, cleaning preparations, lubricants and waxes;
- certain reagents, reference materials and wastes;
- plastics and plastic articles;
- rubber flooring and mats;
- wood products;
- paper, paperboard, bags and labels;
- carpets, rugs, textile flooring and turf;
- appliances, tools and valves;
- certain canoes;
- surgical, demonstration and optical instruments; and
- archery equipment and related parts and accessories.
The products removed from Section 338 coverage include classifications covering certain seaweed and algae products, plastics and packaging, plywood, paper and packaging products, and selected refrigeration, thermal-treatment, packaging and agricultural machinery.
There are no changes to the classifications covered under HTSUS 9903.03.12 or 9903.03.13 as part of this October 30 modification.
How the additional duty applies
For products newly brought within the scope of HTSUS 9903.03.14, the applicable Section 338 measure is an additional 50% ad valorem duty.
The Section 338 duty is in addition to other applicable duties. The October 23 proclamation specifies that Section 338 duties continue to apply in addition to duties imposed under Section 232 of the Trade Expansion Act of 1962.
Products covered by the Section 338 provisions remain subject to applicable antidumping and countervailing duties and other duties, taxes, fees, exactions and charges.
What importers should do
Importers of Canadian-origin goods should review their HTSUS classifications against the revised Section 338 product list to determine whether their goods were added to or removed from the scope of the 50% additional duty effective October 30.
Importers should also review whether other trade measures, including Section 232, antidumping or countervailing duties, may continue to apply independently of the Section 338 treatment. Removal of a product from Section 338 coverage does not, by itself, remove other applicable tariffs or trade remedies.
For the complete list of affected tariff classifications and entry instructions, refer to CBP’s Section 338 guidance and the October 23 White House proclamation.