United States · Enacted legislation
US revises Canadian goods subject to 50% Section 338 duty
On 23 October 2026, the US President issued a proclamation removing specified Canadian products from, and adding others to, the 50% additional duty imposed under section 338 of the Tariff Act of 1930.
- Official document:
- Presidential Proclamation of 23 October 2026; Proclamation 11048 as amended
- Development date:
- 2026-10-23
The revised product scope applies to goods entered for consumption, or withdrawn from warehouse for consumption, from 12:01 a.m. Eastern Time on 30 October 2026. Products in Part A of Annex I cease to attract the additional 50% duty, while products in Part B become subject to it. The proclamation also states that the Section 338 charge is additional to any duty imposed under section 232 of the Trade Expansion Act of 1962.[1][2][3]
The measure amends the existing Canada action
The action modifies Proclamation 11048 of 20 July 2026, which used section 338, codified at 19 USC 1338, to address the President's finding that Canada's motor-vehicle tariff scheme discriminated against US commerce. The 23 October proclamation follows an earlier scope revision under Proclamation 11065 of 8 September. It relies on section 338's power to amend a proclamation when the public interest requires and on section 604 of the Trade Act of 1974 to reflect the change in the Harmonized Tariff Schedule of the United States.[1]
HTSUS classifications control the additions and removals
The removals include listed tariff lines for seaweed, plastics packaging, plywood and paper packaging, refrigeration equipment and certain industrial, packing and agricultural machinery. The additions cover specified lines for sweetened cocoa powder, paints, mastics, shampoo, soap, lubricants, waste products, polymers, flooring, wood and paper articles, carpets and selected equipment and instruments. These descriptions are only summaries: Annex I says the listed HTSUS provisions determine the legal scope, and Annex II implements the changes by amending US note 51 in subchapter III of chapter 99.[2][3]
Importers need an entry-date and classification review
Groups importing Canadian goods should test each product against the exact tariff numbers rather than the broad product descriptions and identify entries crossing the 30 October effective time. They should also model the combined landed-cost effect where section 232 duties apply. US Customs and Border Protection may issue implementing rules, guidance or determinations, and may publish technical or ministerial HTSUS corrections in the Federal Register, so classifications and customs instructions should be monitored after the proclamation takes effect.[1][2][3]
Official sources
- [1] 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
The White House · Document date: 2026-10-23
Full proclamation read. Paragraphs 1-10 set out Proclamations 11048, 11056 and 11065 and the section 338 and section 604 authorities; operative clauses 1-8 specify the removals, additions, cumulative section 232 treatment, 30 October 2026 effective time, CBP implementation and correction powers. Signed 23 October 2026.
- [2] Annex I — Products No Longer Covered by and Products Added to Section 338 Tariffs
The White House · Document date: 2026-10-23
All six pages read. Part A on pages 1-2 lists removed HTSUS lines; Part B on pages 2-6 lists additions. The opening note states that descriptions are informational and do not delimit the action.
- [3] Annex II — HTSUS modifications
The White House · Document date: 2026-10-23
Both pages read. Section A modifies US note 51 in subchapter III of chapter 99 by deleting and inserting the listed HTSUS subheadings for entries from 12:01 a.m. Eastern Time on 30 October 2026.