On October 23, 2026, a proclamation modifying the products of Canadian origin subject to additional tariffs under Section 338 of the Tariff Act of 1930 was issued.
Effective October 30, 2026, certain products will be removed from the existing 50% additional tariff, while other products will be added to the list of covered merchandise.
The changes reflect the Administration’s ongoing response to Canada’s treatment of U.S. motor vehicle and automotive parts exports.
The revised tariffs apply to merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 30, 2026.
Importers should review their Harmonized Tariff Schedule of the United States (HTSUS) classifications and upcoming shipments to determine whether the changes affect their tariff obligations.
Products Removed From the 50% Tariff
Effective October 30, 2026, certain Canadian-origin products will no longer be subject to the additional 50% Section 338 tariff.
Affected categories include:
Plastics and packaging:
Certain polypropylene sheets, plastic packing boxes, and polyethylene bags.
Wood products:
Certain plywood sheets.
Paper and paperboard:
Certain plastic-coated paper, corrugated cartons, paper bags, and molded paper pulp products.
Refrigeration equipment:
Certain refrigerating and freezing equipment.
Industrial machinery:
Certain temperature-treatment machinery.
Packaging machinery:
Certain filling, sealing, labeling, packing, and wrapping equipment.
Agricultural machinery:
Certain produce cleaning, sorting, and grading machines.
Other products:
Certain seaweed and algae products.
Removal from the Section 338 tariff program does not mean these products will enter the United States duty-free. Standard HTSUS duties and other applicable trade measures may still apply.
The specific classifications removed from coverage are listed in Annex I, Part A, of the proclamation. Related HTSUS modifications appear in Annex II.
Products Added to the 50% Tariff
The proclamation also expands the Section 338 tariff program to cover additional Canadian-origin products beginning October 30, 2026.
Newly covered categories include:
Food products: Certain sweetened cocoa powders.
Chemicals: Certain paints, varnishes, caulking compounds, mastics, laboratory reagents, and prepared waxes.
Personal care products: Certain shampoos and soaps.
Cleaning products: Certain household and commercial cleaning preparations.
Lubricants: Certain lubricating preparations.
Plastics and polymers: Certain polyethylene terephthalate (PET), polyurethanes, and plastic articles.
Wood products: Certain fiberboard, wood flooring, wood packaging, and other wood articles.
Paper products: Certain composite paperboard, kraft paper, coated paper, and labels.
Flooring and carpets: Certain vinyl flooring, rubber mats, textile floor coverings, and woven, tufted, knotted, and felt carpets.
Machinery and equipment: Certain air conditioners, chest freezers, and handheld electric tools.
Industrial components: Certain hand-operated iron or steel valves.
Medical equipment: Certain electrosurgical instruments.
Other products: Certain waste materials, recreational watercraft, and demonstration instruments.
The full list of affected HTSUS classifications is provided in Annex I, Part B, with related tariff schedule amendments in Annex II.
Important: Not every product within these categories is subject to the additional tariff. Coverage depends on the applicable HTSUS classification and the specific requirements of the proclamation.
How the Tariffs Interact With Other Duties
Importers should consider the following requirements when reviewing the revised tariff treatment.
Additional Duties
The 50% Section 338 tariff applies in addition to ordinary Customs duties and applicable additional duties under other trade measures.
USMCA Eligibility
Preferential treatment under the United States-Mexico-Canada Agreement (USMCA) does not, by itself, exempt covered Canadian-origin merchandise from the Section 338 tariff.
Section 232 Tariffs
Section 338 duties apply in addition to applicable Section 232 duties. Merchandise covered by both programs may therefore incur multiple additional tariffs, including duties related to automotive products, steel, aluminum, or other applicable trade measures.
Civil Aircraft Exception
Certain newly covered civil aircraft and aircraft parts may qualify for an exception under General Note 6 of the HTSUS. Eligibility depends on the merchandise and applicable tariff requirements
Impact on Shipments Already in Transit
The revised tariff treatment is based on the date merchandise is entered for consumption or withdrawn from warehouse for consumption, not the date it was shipped.
The proclamation does not establish a general in-transit exception for merchandise shipped before October 30, 2026. Shipments arriving or entered after the effective date may therefore be subject to the revised tariff treatment even if they left Canada earlier.
Importers should review pending shipments and coordinate with their Customs broker before entry.
Recommended Actions for Importers
Juno Customs Solutions recommends that importers of Canadian-origin merchandise take the following steps:
Review HTSUS classifications. Compare imported products against the classifications being added to or removed from Section 338 coverage.
Evaluate upcoming shipments. Identify merchandise scheduled for entry on or after October 30, 2026.
Recalculate potential duties. Determine whether the changes may increase duty exposure or provide tariff relief.
Check overlapping tariffs. Review Section 232 duties and other applicable trade measures separately.
Confirm country of origin. The provisions apply to merchandise of Canadian origin, not simply merchandise shipped or exported from Canada.
Update compliance records. Ensure tariff databases, landed-cost calculations, and Customs entry instructions reflect the changes.
Important Note Regarding HTSUS Annexes
During its review of the proclamation, Juno Customs Solutions identified two HTSUS classifications, 9027.30.80 and 9506.99.05, that appear among the additions in Annex II but are not included in the product descriptions provided in Annex I, Part B.
Importers with merchandise classified under these provisions should seek clarification before determining the applicable Section 338 tariff treatment.
U.S. Customs and Border Protection (CBP) is authorized to issue implementing guidance and make necessary technical corrections.
How Juno Customs Solutions Can Help
The revised Section 338 tariffs may affect the landed cost of Canadian-origin merchandise, particularly when multiple trade measures apply.
Juno Customs Solutions can help importers review HTSUS classifications, identify potentially affected products, and evaluate applicable duties.
For questions about the revised requirements or upcoming shipments, contact our Trade Compliance team at brokerage@junocustoms.com
Disclaimer: This advisory is provided for general informational purposes and reflects government announcements available as of October 27, 2026. Importers remain responsible for the proper classification, valuation, country of origin, and duty treatment of imported merchandise. Additional guidance or amendments issued by CBP or other government agencies may affect implementation.