Effective October 30, 2026, Canada product coverage changes under the 50% Section 338 tariff, adding and removing specified HTSUS lines.

WHAT CHANGED

The President modified the scope of the additional 50% ad valorem Section 338 duty imposed on certain products of Canada under Proclamation 11048, as amended. The duty changes apply in addition to applicable Section 232 duties.

Annex I, Part A removes the 50% Section 338 duty from 22 specified Canadian product lines. Annex I, Part B adds the 50% Section 338 duty to the specified Canadian product lines, unless the goods are civil aircraft or aircraft parts meeting the criteria of HTSUS General Note 6.

Annex II modifies subchapter III of Chapter 99, including U.S. note 51, subdivision (b)(3), by deleting the Part A subheadings and inserting the Part B subheadings.

AFFECTED PRODUCTS

Products no longer subject to the 50% Section 338 duty include:

• Seaweed and algae for human consumption: 1212.21.00.
• Plastic film, boxes, cases, sacks, and bags: 3920.20.00, 3923.10.90, 3923.21.00.
• Specified plywood: 4412.33.06, 4412.33.26, 4412.33.32, 4412.33.57, 4412.34.26, 4412.34.32, 4412.34.57.
• Plastic-coated paper and paperboard: 4811.51.20, 4811.51.40.
• Paper and paper-pulp packaging and articles: 4819.10.00, 4819.40.00, 4823.70.00, 4823.90.10.
• Refrigerating/freezing equipment and temperature-treatment machinery: 8418.69.01, 8419.89.95.
• Filling, sealing, packing, wrapping, and agricultural produce machinery: 8422.30.91, 8422.40.91, 8433.60.00.

Products newly subject to the 50% Section 338 duty include:

• Sweetened cocoa powder under the listed quota and note provisions: 1806.10.05, 1806.10.10, 1806.10.15, 1806.10.22, 1806.10.24, 1806.10.28, 1806.10.34, 1806.10.38, 1806.10.43, 1806.10.45, 1806.10.55, 1806.10.65, 1806.10.75.
• Paints, varnishes, mastics, shampoos, soap, surfactants, lubricants, and waxes: 3208.20.00, 3214.10.00, 3305.10.00, 3401.11.50, 3402.50.51, 3403.19.50, 3403.99.00, 3404.90.51.
• Diagnostic reagents, reference materials, and chemical or allied-industry waste: 3822.19.00, 3822.90.00, 3825.10.01, 3825.20.00, 3825.30.00.
• Plastics, polymers, vinyl flooring, boat parts, and rubber floor coverings: 3907.61.00, 3909.50.10, 3918.10.20, 3926.90.30, 4016.91.00.
• Wood products, MDF, fiberboard, packing boxes, flooring, joinery, coffins, and wooden articles: 4409.10.05, 4411.12.10, 4411.12.90, 4411.92.10, 4415.10.30, 4418.75.70, 4418.91.91, 4421.20.20, 4421.99.60.
• Paper, paperboard, kraft paper, labels, sacks, bags, and packaging: 4802.56.70, 4804.31.60, 4807.00.94, 4811.41.10, 4811.59.20, 4811.59.40, 4819.30.00, 4821.90.20.
• Carpets and textile floor coverings, including wool, animal hair, cotton, coir, synthetic, felt, and other materials: 5701.10.16, 5701.10.40, 5701.10.90, 5701.90.10, 5701.90.20, 5702.10.90, 5702.20.10, 5702.20.20, 5702.31.10, 5702.31.20, 5702.32.10, 5702.32.20, 5702.39.20, 5702.41.10, 5702.41.20, 5702.42.10, 5702.42.20, 5702.49.10, 5702.49.20, 5702.50.20, 5702.50.40, 5702.50.52, 5702.50.56, 5702.50.59, 5702.91.40, 5702.92.10, 5702.92.90, 5702.99.05, 5702.99.15, 5702.99.20, 5703.10.20, 5703.10.80, 5703.21.00, 5703.29.10, 5703.29.20, 5703.31.00, 5703.39.10, 5703.90.00, 5704.10.00, 5704.20.00, 5704.90.01, 5705.00.10, 5705.00.20.
• Air-conditioning machines, chest freezers, hand tools, valves, canoes, electro-surgical instruments, demonstration instruments, spectrometers, and archery equipment: 8415.10.30, 8418.30.00, 8467.29.00, 8481.80.30, 8903.93.05, 9018.90.60, 9023.00.00, 9027.30.80, 9506.99.05.

RATE CHANGES

• Products listed in Annex I, Part A: 50% additional Section 338 duty removed; the proclamation does not state that other ordinary, Section 232, or other applicable duties are removed.
• Products listed in Annex I, Part B: 50% additional ad valorem Section 338 duty imposed.
• The Section 338 duty applies in addition to duties imposed under Section 232.

DATES

• Proclamation date: October 23, 2026.
• Effective date: 12:01 a.m. Eastern time on October 30, 2026.
• Applicability: Goods entered for consumption, or withdrawn from warehouse for consumption, on or after the effective date.
• Duration: The HTSUS modifications continue unless expressly suspended, revoked, supplemented, amended, or terminated.

REQUIRED ACTIONS

• 1. Review Canadian-origin import transactions scheduled for entry or warehouse withdrawal on or after October 30, 2026.
• 2. Identify products classified under all Annex I Part A and Part B HTSUS subheadings.
• 3. Remove the applicable 50% Section 338 Chapter 99 duty treatment for Part A products, while retaining any other applicable duties.
• 4. Add the applicable 50% Section 338 duty treatment for Part B products.
• 5. Confirm whether Section 232 duties or other trade measures also apply and calculate cumulative duty exposure.
• 6. Update broker instructions, customs entry software, product master data, landed-cost models, and duty accruals.
• 7. Validate classifications against the full HTSUS and CBP guidance; Annex product descriptions are informational and do not independently define scope.
• 8. For potentially qualifying civil aircraft or aircraft parts, document eligibility under HTSUS General Note 6 before claiming exclusion from the Part B duty.
• 9. Monitor CBP implementation guidance and any Federal Register technical or ministerial corrections.

REFERENCES

White House Annex I, product exclusions and additions:

https://www.whitehouse.gov/wp-content/uploads/2026/10/2026ModifyingAuto338.prc_.AnnexI-3.pdf

White House Annex II, Chapter 99 and HTSUS modifications:

https://www.whitehouse.gov/wp-content/uploads/2026/10/2026ModifyingAuto338.prc_.AnnexII-2.pdf