On October 23, 2026, President Trump issued a new proclamation — 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 — once again adjusting the list of Canadian-origin products subject to the 50% ad valorem duties imposed under Section 338 of the Tariff Act of 1930. The changes take effect for goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on October 30, 2026.
Background
The Section 338 duties were originally imposed under Proclamation 11048 of July 20, 2026, based on the Administration’s finding that Canada’s motor vehicle tariff scheme discriminates against US commerce and imposed 50% ad valorem duties on a range of Canadian goods effective August 22, 2026 based on tariff classifications. The product list was first modified on September 8, 2026 (Proclamation 11065), and has now been revised again.
What’s changing effective October 30
The October 23 proclamation removes a number of products from the tariff scope while adding others — netting out to a broader list of imported goods overall. According to the White House fact sheet and subsequent CBP-facing guidance:
Removed from scope:
- Certain plywood sheets
- Some paper products
- Certain machinery and refrigeration equipment
- Certain packing crates and boxes
Added to scope (at the 50% rate):
- Carpets and rugs
- Certain wood and paper products
- Certain chemical products (e.g., paints, soaps, lubricants)
- Certain consumer products (e.g., cocoa powder, vinyl flooring, canoes, chest freezers)
- Certain valves, instruments, and waste products
The authoritative lists are set out in the annexes to the proclamation. A copy of the modified HTS list is available here.
The Section 338 duties continue to apply to Canadian-origin goods that qualify for preferential treatment under theUSMCA and stack in addition toSection 232 duties.
The stated rationale: “public interest”
Section 338 gives the President authority to suspend, revoke, supplement, or amend prior proclamations “whenever the President deems that the public interests require such action.” The White House frames the latest amendments as necessary “to continue effectively offsetting the burden to U.S. commerce while better serving the public interest.”
Section 338 CIT challenge initiated
Notably, this latest round of amendments landed in the same week that a US importer filed the first direct challenge with the US Court of International Trade (CIT) to the Section 338 tariffs: Gellert Global Group Corp. v. Trump. The plaintiff is seeking a declaration from the CIT that the duties are unlawful, an injunction halting collection, and refunds with interest, and asks the CIT to certify a class covering all affected importers of record.
Practical takeaways for importers
- Re-screen Canadian-origin HTSUS lines now. Products previously out of scope may be newly covered (and vice versa) as of October 30 — duty treatment turns on entry date, not contract or shipment date.
- Remember duty stacking. Section 338 duties apply to Canadian-origin goods in addition to Section 232 duties and regardless of eligibility for preferential treatment under the USMCA and General Note 11 of the Harmonized Tariff Schedule.
- Watch the litigation. Given the parallel track record of successful challenges to the IEEPA and Section 122 tariffs, importers paying Section 338 duties may want to consider refund-preservation strategies while Gellert proceeds.
- Expect further amendments. The Administration has now revised the Section 338 product scope three times since July, underscoring that the list remains a moving target.
