Canada tariffs: the US swaps 22 products out and 100 in on its 50% Section 338 list
From October 30, 2026, 22 tariff lines of Canadian goods leave the 50% US Section 338 duty and 100 new ones join it, including carpets, shampoo, soap, valves and labels. Who is affected and what it costs.
A proclamation signed on October 23, 2026 changes which products of Canada pay the additional 50% US duty under Section 338 of the Tariff Act of 1930. From 12:01 a.m. eastern time on October 30, 22 tariff lines come off the list, among them corrugated boxes, plastic packing bags and some plywood, and 100 go on, among them carpets and rugs, shampoo, soap, hand power tools, valves and blank pressure-sensitive labels.
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The short version
- The US President signed a proclamation on October 23, 2026 that amends Proclamation 11048, the 50% additional duty on certain products of Canada under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338).
- Annex I, Part A takes 22 tariff lines off the list, including corrugated cartons and boxes (4819.10.00), plastic packing boxes and polyethylene bags, thin plywood, some coated paperboard, and some refrigerating and packing machinery.
- Annex I, Part B puts 100 tariff lines on the list, including most carpets and rugs (headings 5701 to 5705), shampoo, toilet soap, paints, waxes, MDF, wood packing boxes, kraft paper, unprinted pressure-sensitive labels, window air conditioners, chest freezers, hand-held power tools, iron or steel hand valves, canoes and archery equipment.
- The changes apply to goods entered for consumption, or withdrawn from warehouse, on or after 12:01 a.m. eastern time on October 30, 2026. The White House says the duty applies whether or not a good qualifies under USMCA, and on top of any Section 232 duty.
By the numbers
Key dates
- 30Oct Canada Section 338 list changes take effect
What changed
The Section 338 duties on certain products of Canada were first set by Proclamation 11048 of July 20, 2026 at 50% ad valorem, the maximum Section 338 allows, and took effect at 12:01 a.m. eastern time on August 22, 2026, after a three-day suspension. Proclamation 11065 of September 8 changed the product list once, effective September 15.
The proclamation of October 23, 2026 changes it again. Its Annex I has two parts, and the rate stays at 50%:
| Change from Oct 30 | Tariff lines | Examples (HTSUS) |
|---|---|---|
| Leaves the 50% list (Part A) | 22 | Corrugated cartons and boxes (4819.10.00), plastic boxes and crates for packing (3923.10.90), polyethylene sacks and bags (3923.21.00), plywood up to 6 mm, paper pulp trays, refrigerating equipment nesoi (8418.69.01), packing and labeling machinery |
| Joins the 50% list (Part B) | 100 | Carpets and rugs (5701 to 5705), shampoos (3305.10.00), toilet soap (3401.11.50), unprinted pressure-sensitive labels (4821.90.20), kraft paper (4804.31.60), wood packing boxes (4415.10.30), hand power tools (8467.29.00), hand valves of iron or steel (8481.80.30), chest freezers (8418.30.00), canoes (8903.93.05), archery equipment (9506.99.05) |
Our count of the tariff lines in Annex I of the October 23 proclamation. The annex says its product descriptions are for information only; the HTSUS numbers set the scope, and CBP answers scope questions. Civil aircraft articles under General Note 6 are excluded from Part B.
The White House fact sheet confirms the effective date of October 30, that the duties apply regardless of USMCA origin, and that they stack on Section 232 duties. U.S. Customs and Border Protection (CBP) is authorized to issue the implementing guidance.
What it means for your business
For goods on the new list, the extra cost is simple: half the customs value, on top of the normal duty and any Section 232 duty. Two illustrative examples, using made-up order values:
| Illustrative order, made in Canada | Customs value | Section 338 duty before Oct 30 | From Oct 30 |
|---|---|---|---|
| Woven wool rugs (5702.31.20) | $2,000 | $0 | $1,000 |
| Corrugated shipping boxes (4819.10.00) | $2,000 | $1,000 | $0 |
| Shampoo and soap (3305.10.00, 3401.11.50) | $500 | $0 | $250 |
Our calculation: 50% of the customs value. Normal (MFN) duty, any Section 232 duty, broker fees and taxes come on top and are not shown.
That matters most to three groups. US small businesses that buy supplies from Canada: packaging gets cheaper (boxes, poly bags, packing crates leave the list), while blank labels, kraft paper and wood boxes get dearer. Canadian makers who sell to US customers, for example rugs, soap or shampoo on Etsy, Amazon or a Shopify store: those goods now carry the 50% duty when they enter the US, USMCA or not. And importers who route goods through Canada: the duty applies to products of Canada, so confirm the origin of what you import with your customs broker or CBP.
To see what 50% does to your margin, put your numbers through our landed cost calculator with the duty field set to 50%, then add the normal duty rate for your HTSUS line.
Who is affected
- US importers and small businesses buying goods made in Canada, especially packaging, paper, flooring, carpets, personal care products and tools.
- Canadian sellers shipping rugs, soap, shampoo, canoes, archery gear or the other added products to US buyers.
- Customs brokers and freight forwarders filing entries for Canadian goods on or after October 30, 2026.
What to do now
- Look up each Canadian product you buy or sell by its 10-digit HTSUS number in Annex I of the proclamation; the descriptions alone do not decide scope.
- For products joining the list, compare entering before 12:01 a.m. eastern time on October 30 with paying 50% after; goods withdrawn from warehouse on or after that time pay the new rate.
- Canadian sellers: re-price US listings for the added products now, and say on the listing who pays duty at delivery.
- Ask your carrier or customs broker how they will collect the duty on your shipments, and watch CBP's CSMS messages for the implementing guidance.
- Run the new cost through our landed cost calculator before your next order.
See what 50% does to your landed cost
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General information, not legal, tax or customs advice. Rules change often: check the official sources above or a licensed customs broker before you act. SuanSupply is not affiliated with any government agency or marketplace named here.