22 products out, 100 in: the 50% Canada tariff list changes Oct. 30
President Trump's Oct. 23 proclamation under Section 338 pulls plywood, paper, machinery and refrigeration equipment off the 50% duty list and adds carpets, vinyl flooring, paints, valves and chest freezers, effective for entries on or after Oct. 30.
Article summary
- Why it matters: If you buy Canadian plywood, packaging, machinery or refrigeration equipment, your landed cost just dropped. If you buy carpets, vinyl flooring, paints, valves or window air conditioners from Canada, a 50% duty lands on entries from tomorrow. Both groups need to re-run landed-cost math before the next order.
- What to do first: Re-run landed cost on both sides of the list today. The effective date is tomorrow: goods entered on or after Oct. 30 follow the new annexes, and in-transit or warehouse inventory may be timed to land on the cheaper side.
- Check your HTS codes against the annexes, not the press summaries. Coverage is by specific product lines; a category name in a headline doesn’t tell you whether your specific code is in or out.
- 50%
- Section 338 duty on covered Canadian goods
- 22
- products removed from the tariff list
- 100
- products added to the tariff list
- Oct. 30
- effective date for entries and warehouse withdrawals
On this page
The details
What happened. On Friday, Oct. 23, President Trump signed a proclamation under Section 338 of the Tariff Act of 1930 further modifying the list of Canadian goods subject to the 50% additional ad valorem duty imposed by Proclamation 11048, according to the White House fact sheet. The duties were first announced July 20, 2026 and modified once before, on Sept. 8, when the administration added more than 100 goods and removed ten, according to Sandler, Travis & Rosenberg’s Trade Report.
What’s out. The new proclamation removes 22 products from the tariff list, including certain plywood sheets, paper products, machinery and refrigeration equipment, and packing crates and boxes, per the Trade Report. CNBC, citing Sen. Susan Collins of Maine, lists corrugated paper, plastic boxes and packing bags, refrigeration equipment, multiple forms of machinery, and seaweed and algae products among the exemptions.
What’s in. One hundred products are added, including certain cocoa powder, paints, soaps, vinyl flooring, carpets, wood and paper products, canoes, chest freezers, valves, instruments, and waste products, per the Trade Report. Facilities Dive reports that carpets, a wide range of floor coverings and self-contained window and wall air conditioners are newly covered — products the proclamation newly subjects to the 50% duty.
The fine print that decides what you pay. The changes are effective for subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Oct. 30, 2026. The proclamation states the Section 338 tariff applies regardless of whether a good qualifies as originating under the USMCA and in addition to any applicable Section 232 duties — so covered goods can carry a stacked duty burden, the same stacking buyers have already been navigating on forced-labor and other tariff layers. The full annex lists are published with the proclamation.
Why now. CNBC notes the new list takes effect four days before the Nov. 3 U.S. election. The move follows Canada’s September retaliatory tariffs and U.S. import bans on goods including specialty cheeses, boats and furniture, as Facilities Dive recounts. The same week, a lawsuit filed at the Court of International Trade by the Liberty Justice Center on behalf of food importer Gellert Global Group asks the court to block collection and order refunds, arguing the administration did not meet Section 338’s requirements — a reminder that this regime remains legally contested.
The Oct. 30 list swap at a glance
| Direction | Examples | Duty effect for entries on/after Oct. 30 |
|---|---|---|
| Removed (22 products) | Plywood sheets, paper products, machinery, refrigeration equipment, packing crates and boxes, seaweed and algae products | 50% Section 338 duty no longer applies |
| Added (100 products) | Carpets, vinyl flooring, paints, soaps, cocoa powder, valves, chest freezers, canoes, window/wall air conditioners, waste products | 50% Section 338 duty applies, regardless of USMCA origin |
| Unchanged | Goods carried over from the July 20 and Sept. 8 lists (wine, cosmetics, furniture, apparel and others) | 50% duty continues |
What procurement teams should do
- Re-run landed cost on both sides of the list today. The effective date is tomorrow: goods entered on or after Oct. 30 follow the new annexes, and in-transit or warehouse inventory may be timed to land on the cheaper side.
- Check your HTS codes against the annexes, not the press summaries. Coverage is by specific product lines; a category name in a headline doesn’t tell you whether your specific code is in or out.
- Confirm entry timing with your customs broker. Goods withdrawn from warehouse for consumption on or after Oct. 30 are covered, so bonded inventory can be a genuine tariff lever this week.
- Ask newly covered suppliers for duty-inclusive pricing and alternatives. Carpets, flooring, paints and window AC units from Canada now carry 50% — compare U.S. and third-country sources before renewing contracts.
- Track the litigation. The Gellert case at the Court of International Trade seeks refunds; keep duty-paid entries documented so you can claim if the tariff is struck down, as buyers did after IEEPA refunds opened.
What to watch next
- Entries from Oct. 30. First week of enforcement will show how CBP applies the annex boundaries and any classification disputes.
- The Gellert Global Group suit at the Court of International Trade, which could put Section 338 collection and refunds in question.
- Any Canadian response. Ottawa matched U.S. moves with its own retaliation in September; a Canadian reaction to this scope change would hit exporters of affected U.S. goods.
The bigger picture
This is the third revision of the Section 338 Canada list in three months, which is the real lesson for sourcing teams: the scope of the U.S.-Canada tariff war now moves month to month, product line by product line. Buying decisions made against a static duty assumption go stale quickly. Procurement teams should treat the annexes as living documents — mirror the tariff deadline tracker discipline that has kept China exclusion expirations visible, and keep a duty-sensitivity line in every Canada-sourced category strategy.
Questions procurement teams are asking
Does USMCA-qualifying origin exempt a Canadian good from the Section 338 duty?
No. The proclamation states the Section 338 tariff applies to all covered goods regardless of whether they originate under the U.S.-Mexico-Canada Agreement, and on top of any applicable Section 232 duties.
When do the new product additions and removals take effect?
For subject goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Oct. 30, 2026.
Is the Section 338 Canada tariff being challenged in court?
Yes. A suit filed at the Court of International Trade in October 2026 by the Liberty Justice Center on behalf of food importer Gellert Global Group argues the administration did not meet Section 338's requirements and seeks refunds.
How we reported this
This story draws on 5 sources, listed below, and reflects figures as reported on October 29, 2026. The sections on why it matters and what procurement teams should do are Procurement Signal analysis. It is not legal or financial advice. See our editorial standards.
Sources
- The White House — Fact Sheet: President Donald J. Trump Further Modifies Canadian Products Subject to Tariffs Under Section 338 (Oct. 23, 2026)
- The White House — Proclamation: Further Modifying the Scope of Products of Canada Subject to Section 338 Duties (Oct. 23, 2026)
- Sandler, Travis & Rosenberg — List of Canadian Goods Subject to Section 338 Tariff Modified (Oct. 27, 2026)
- Facilities Dive — Trump tweaks Canada tariffs, removing certain goods while adding others (Oct. 26, 2026)
- CNBC — U.S. dropping some Canada tariffs, replacing with other products (Oct. 23, 2026)
