Canada Tariffs: New Section 338 Proclamation Swaps Products In and Out of the 50% Duty, Effective Oct. 30
ANALYSIS · October 24, 2026
Slug: canada-tariffs-section-338-oct-30-changes
Package note: This Analysis covers the presidential proclamation of October 23, 2026, titled “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,” and the White House fact sheet released the same day. As of October 24, 2026, the proclamation has not yet been published in the Federal Register and no proclamation number has been posted, so it is referred to here by title and date. It amends Proclamation 11048 (July 20, 2026), as already modified by Proclamation 11065 (September 8, 2026). It changes which Canadian products carry the additional 50% duty. It does not change the legal basis or the 50% rate.
Primary sources
- White House, Presidential Actions (October 23, 2026), proclamation text: https://www.whitehouse.gov/presidential-actions/2026/10/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
- White House, Fact Sheet (October 23, 2026): https://www.whitehouse.gov/fact-sheets/2026/10/fact-sheet-president-donald-j-trump-further-modifies-canadian-products-subject-to-tariffs-under-section-338
- Federal Register, Proclamation 11048 (July 20, 2026) and Proclamation 11065 (September 8, 2026), the earlier actions this proclamation amends.
On October 23, 2026, President Trump signed a proclamation under Section 338 of the Tariff Act of 1930 that changes the list of Canadian products subject to the additional 50% ad valorem duty first imposed in Proclamation 11048. Products listed in Annex I, Part A come off the duty; products listed in Annex I, Part B are added. According to the fact sheet, the products removed include plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes; the products added include certain valves, carpets, waste products, and others. The changes apply to goods entered on or after 12:01 a.m. Eastern time on October 30, 2026. The duties apply in addition to Section 232 tariffs, and the fact sheet says they apply regardless of USMCA origin.
Background on the record
The proclamation recites this sequence of earlier actions:
- July 20, 2026 — Proclamation 11048: Imposed additional duties on certain Canadian products under Section 338, effective August 19, 2026, citing Canada’s motor vehicle tariff scheme.
- August 18, 2026 — Proclamation 11056: Suspended the effective date for 3 days after, per the proclamation, Canada expressed a commitment to remove the measures at issue.
- August 21–22, 2026: The proclamation states Canada “reneged on its commitment” and did not remove the measures; the suspension lapsed and the duties took effect at 12:01 a.m. Eastern time on August 22.
- September 8, 2026 — Proclamation 11065: First modification of the product scope.
- October 23, 2026 — this proclamation: Second modification of the product scope.
Core Tension
The White House presents the change as a refinement that keeps offsetting the burden on U.S. commerce while “better serving the public interest.” The rate and legal authority stay the same; only the product list changes. The proclamation’s operative text points to Annex I, Parts A and B for the exact products, and the fact sheet names categories only. Neither document gives the dollar value of trade added or removed, so the net effect on the scope of the duties cannot be determined from the White House text alone.
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