U.S. Section 338 50% Tariffs on Canadian Goods: Scope Modification
What happened
In August 2026, President Trump invoked Section 338 of the Trade Act of 1930 to impose 50% additional ad valorem duties on certain products of Canada after negotiations with Canada broke down, under Proclamation 11048. On October 23, 2026, a presidential proclamation modified the scope of those duties: products listed in Annex I, Part A are no longer subject to the duty, and products listed in Annex I, Part B become subject to it. The change is effective for goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on October 30, 2026.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 duties apply in addition to other duties. A trade-press report of the same date describes the change as removing plywood, certain industrial machinery, and select packaging and paper materials from the list while adding cocoa powder, carpets and air conditioners; the proclamation itself identifies the affected goods by Annex I, Parts A and B. The current rule is the modified scope, applying from October 30, 2026.
Generated by AI from the reports · updated 5 days ago
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- White House · Presidential ActionsTop PickTrump proclamation modifies scope of 50% Section 338 duties on certain Canadian motor vehicle products
President Trump issued a proclamation modifying the scope of the 50% additional ad valorem duties imposed under Proclamation 11048, as amended, on certain products of Canada: products listed in Annex I, Part A are no longer subject to the duty, and products listed in Annex I, Part B become subject to it, effective for goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on October 30, 2026.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 duties apply in addition to duties imposed under section 232 of the Trade Expansion Act of 1962, and the HTSUS is modified as provided in Annex II on the same effective date.
- Supply Chain DiveTop PickTrump proclamation adjusts Section 338 50% tariffs on Canada imports, effective October 30
A proclamation President Donald Trump signed Friday changes the list of Canada goods covered by the 50% Section 338 tariffs, effective October 30: plywood, certain industrial machinery, and select packaging and paper materials come off the list, while cocoa powder, carpets and air conditioners are added. Trump invoked Section 338 of the Trade Act of 1930 in August after negotiations with Canada broke down, and the proclamation says senior executive branch officials advised that the change would still offset the alleged discrimination while serving the public interest.
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