The White House has announced changes to the scope of the additional 50% tariffs imposed on certain Canadian products under Section 338, pursuant to Proclamation 11048, as amended. The proclamation removes 22 HTSUS subheadings from the tariff coverage and adds 100 new HTSUS subheadings.
The changes will take effect on October 30, 2026, at 12:01 a.m. EST and will apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after that date.
The products removed from the scope of the 50% tariff include certain cardboard and plastic boxes and bags, plastic film, seaweed, plywood, paper and paper products, agricultural cleaning, sorting and grading machinery, packaging and wrapping machinery, and refrigeration and freezing equipment. These exclusions may provide relief to importers relying on Canadian products that are difficult or costly to source domestically.
At the same time, 100 HTSUS subheadings will be newly subject to the additional 50% tariff. The newly covered products span a broad range of industries and include various cocoa powders, certain paints and glaziers’ putty, shampoo, lubricants, artificial wax, diagnostic reagents, waste and sludge products, valves, carpets, vinyl flooring, rubber mats, wood flooring panels, fiberboard and medium-density fiberboard (MDF). Other additions include wooden packing boxes and caskets, certain paper products and paper bags, artificial turf, pleasure boat parts, canoes, archery equipment, window air-conditioning units, chest freezers, certain handheld electrical tools, and selected surgical and scientific equipment.
The proclamation also confirms that the Section 338 tariffs continue to apply in addition to applicable Section 232 duties. Products covered by both measures will be subject to both the Section 338 tariffs and applicable Section 232 duties.
The Harmonized Tariff Schedule will be modified accordingly under Annex II of the proclamation. U.S. CBP is authorized to issue implementation guidance and make any necessary technical or administrative corrections.
Importers should review the revised tariff lists and assess whether their products are affected by either the removal or addition of tariff coverage.
Please refer to the links below for the full proclamation and the lists of removed and newly covered HTSUS subheadings.
