On October 23, 2026, US President Donald Trump signed a proclamation under Section 338 of the Tariff Act of 1930, modifying the scope of the existing additional 50 percent ad valorem duty on certain products of Canada entering the United States. The product additions and removals take effect at 12:01 a.m. Eastern Time on October 30, 2026.
Section 338 allows the President to impose additional duties of up to 50 percent to offset discrimination against US commerce by a foreign country.
The October 23 proclamation changes product coverage under the measures previously announced in July and modified in September.
Changes to certain Section 338 Tariffs
- 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Against the Commerce of the United States with Respect to Motor Vehicles For goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 30, 2026, the revised product coverage applies. Products removed from the 50% duty are listed in Part A and products added are listed in Part B of Annex I. The corresponding amendments to the Harmonized Tariff Schedule of the United States are set out in Annex II.
Importers should take note – where the 50 percent tariff applies, CUSMA/USMCA does not shield covered goods.
The White House Fact Sheet confirms that Section 338 duties apply to all covered goods made in Canada, regardless of whether the goods originate under CUSMA/USMCA. The Section 338 duties also apply in addition to applicable Section 232 duties. A CUSMA/USMCA certificate of origin will not exempt a listed product here.
If you are unsure whether your products are covered by the updated annexes, our US Customs Consulting Services regulatory team can help you determine their classifications. Reach out to Brian Rowe, Director – Customs Compliance & Regulatory Affairs, or your Client Relations Representative.
