U.S. reshuffles its 50% Section 338 tariff on Canadian goods: 22 lines out, 96 in, from 30 October

A proclamation signed 23 October modifies Proclamation 11048 for a second time. Annex I Part A takes 22 eight-digit tariff lines off the 50% duty, including thin plywood, some paper and paperboard, packing machinery and some refrigerating equipment. Part B adds 96 lines, including carpets, valves, window air conditioners, chest freezers, MDF, wood flooring, paints, soap, shampoo and canoes. The tariff applies whether or not a good qualifies under USMCA, on top of Section 232 duties, for goods entered from 12:01 a.m. ET on 30 October.

Verified October 25, 20264 primary sourcesLean methodCorrections

By Daily Teabag Desk

Published Oct 25, 2026, 1:01 a.m. EDT

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Why this lean: Built on the proclamation, its annexes and the fact sheet. Political claims in the fact sheet are attributed, and we give no trade-value estimate that the documents don’t contain. Scored 0.

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United States Capitol, west front — illustrative for a U.S. tariff proclamation — Photo: Architect of the Capitol, public domain

On 23 October 2026 President Trump signed a proclamation further modifying the scope of the 50% additional duty on certain Canadian products imposed by Proclamation 11048 (20 July 2026) under section 338 of the Tariff Act of 1930. The proclamation recites the history: the duties took effect after a three-day suspension (Proclamation 11056) lapsed at 12:01 a.m. ET on 22 August, and Proclamation 11065 of 8 September first changed the product list.

What changes on 30 October

Operative paragraph (1): products in Annex I, Part A “shall no longer be subject to the additional ad valorem duty of 50 percent”, and products in Part B “shall be subject to” it. Both changes apply to goods entered, or withdrawn from warehouse, for consumption on or after 12:01 a.m. eastern time on 30 October 2026.

Out (Part A, 22 lines): seaweed, certain plastic packing articles, thin plywood sheets, some paper and paperboard, certain refrigerating equipment, packing and wrapping machinery, and egg- and fruit-sorting machines.
In (Part B, 96 lines): cocoa powder, paints, shampoo, soap, lubricants, medium-density fibreboard, wood flooring, coffins, several papers, a long list of carpets and rugs, window air conditioners, chest freezers, valves, canoes and electrosurgical instruments, among others.

The annex says its product descriptions are “for informational purposes only”. The HTSUS numbers control. Importers should check the eight-digit lines in Annex I and the HTSUS changes in Annex II.

These Section 338 tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA). — White House fact sheet, 23 October 2026

How it stacks

The proclamation says the duties “shall apply in addition to” Section 232 duties. The White House fact sheet adds that they apply whether or not a good qualifies under USMCA. The separate import bans on some Canadian alcohol, dairy and motor-vehicle products (Proclamations 11061–11063, in force since 29 September) are not changed by this order. Our report on those bans.

Citizen impact: Canadian manufacturers of the 96 added products, including carpet, flooring, MDF, valves, appliances and household chemicals, face a 50% U.S. duty on shipments entered from 30 October. Plywood, paperboard and packing-machinery exporters on the removal list get relief from the same date. U.S. buyers of the added goods pay the duty at entry.

What this piece refuses

We have not estimated the dollar value of trade affected, because neither the proclamation nor the fact sheet gives a figure for these lines. The fact sheet’s claims about Canada walking away from a deal, and its investment totals, are the White House’s characterisation. We report them as its words, not as findings. We do not predict Ottawa’s response.

Bottom line

From 12:01 a.m. ET on 30 October, 22 tariff lines leave the 50% Section 338 duty and 96 join it, with no USMCA exemption, on top of Section 232.

On the watchlist

U.S. Section 338 — Canadian alcohol / dairy / motor-vehicle exclusionsExclusions in force since 29 Sep; 50% duty list reshuffled (22 out / 96 in) from 30 Oct · updated 2026-10-25

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