26.10.2026 Regulation #USA #Import #Duties

US changes list of Canadian goods under 50% Section 338 duty from Oct 30

A presidential proclamation of October 23, 2026 changes which Canadian goods are subject to the additional 50% duty under section 338 of the Tariff Act of 1930. 22 HTSUS subheadings come out of the duty and 100 new ones are added. The changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on October 30, 2026.

Where the duty comes from

The duty was imposed by Proclamation 11048 of July 20, 2026 in response to Canada's tariff scheme for motor vehicles and auto parts, which the US considers discriminatory. After a three-day suspension it took effect at 12:01 a.m. ET on August 22, 2026, and Proclamation 11065 of September 8, 2026 modified its scope (proclamation text). The new change rests on the view of senior executive branch officials that the revised list still offsets the burden on US commerce and better serves the public interest. The duty applies on top of section 232 duties under the Trade Expansion Act of 1962.

Products leaving the duty

Annex I, Part A is mostly packaging and equipment:

edible seaweed and algae, 1212.21;
polypropylene film, plastic boxes and polyethylene sacks, three lines in 3920 and 3923;
thin plywood (up to 6 mm), seven lines in 4412.33 and 4412.34;
plastic-coated paper and paperboard, corrugated cartons 4819.10.00, paper sacks and molded pulp articles, six lines;
refrigerating equipment 8418.69.01, heat-treatment plant, filling, closing and packing machines, and egg and fruit sorting machines, five lines.

Products added to the duty

Carpets and textile floor coverings of chapter 57 dominate Part B with 43 of the 100 lines, 25 of them in heading 5702. Another 13 lines cover sweetened cocoa powder under 1806.10. The rest:

paints, mastics, shampoos, soap, lubricants and waxes (3208–3404), 8 lines;
reagents and chemical-industry residues (3822, 3825), 5;
plastics and rubber articles (3907–4016), 5;
wood products and joinery (4409–4421), 9;
paper and paperboard (4802–4821), 8;
window air conditioners 8415.10.30, chest freezers, hand-held electromechanical tools and valves, 4;
canoes 8903.93.05, medical and demonstration instruments, spectrometers and archery equipment 9506.99.05, 5.

The added lines carry one exception: the duty does not apply to civil aircraft or aircraft parts that meet General Note 6 of the HTSUS.

What importers should check

The list sits in U.S. note 51(b)(3) to subchapter III of chapter 99 of the HTSUS, and the line is drawn at the 8-digit level: 4811.51.20 and 4811.51.40 leave the duty, for instance, while 4811.41.10, 4811.59.20 and 4811.59.40 are added. Product descriptions in the annex are informational only, and the proclamation refers scope questions to CBP. The agency is authorized to issue implementing guidance and must determine whether further HTSUS changes are needed, to be made by notice in the Federal Register.

Reuters, citing The Wall Street Journal and people familiar with the matter, reported that lifting duties on some agricultural and forestry products was tied to the interests of Senator Susan Collins and other Republicans from northern states ahead of the midterm elections. A White House official told the Journal that any preliminary reporting is speculation. The proclamation itself does not mention such motives.

Primary sources

Mentioned codes

4412.33 4819.10.00 8418.69.01 5702 1806.10 8415.10.30 9506.99.05

This material is for information only and does not constitute legal advice or customs consulting. Verify changes against the primary sources before acting.