Toronto, October 26, 2026
On October 23, 2026, US President Donald Trump signed a proclamation under Section 338 of the Tariff Act of 1930, imposing an additional 50 percent ad valorem duty on certain Canadian-origin goods entering the United States while removing the tariff on a small list of other commodities. 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. It has effectively never been used to impose duties before now, and it carries no investigation or consultation requirement.
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 Effective 12:01 a.m. ET on October 30, 2026, this revised list of Canadian origin goods subject to 50% tariff becomes effective. Revisions to the list of tariffs (by HS Tariff Classification and Description) may be found in Annex I, a complete list of changes, e.g. adding certain paint, chemical products, carpets, cocoa powder, shampoo, flooring, electronic goods, municipal and other waste, while removing certain plastic, wood and paper goods, may be found 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 the Section 338 duties apply to all covered goods, made in Canada, regardless of whether the good originates under CUSMA/USMCA. This breaks the pattern importers have relied on for the past 18 months, where a valid origin certification generally provided relief under IEEPA and Section 122 measures. A CUSMA/USMCA certificate of origin will not exempt a listed product here.
If you are unsure whether your products fall under any of the three Annexes, our US Customs Consulting Services regulatory team can help you work through the classifications. Reach out to Brian Rowe, Director, Customs Compliance & Regulatory Affairs, or your Universal Logistics Client Relations representative.
