On October 23, 2026, the President of the United States issued a proclamation further modifying the scope of Canadian products subject to the 50% additional duties imposed under Section 338 of the Tariff Act of 1930. These changes are scheduled to take effect at 12:01 a.m. ET on October 30, 2026.
The proclamation follows earlier actions taken in July and September regarding Canada's motor vehicle tariff policies, which the Administration has determined discriminate against U.S. commerce. According to the White House, the latest revisions are intended to continue offsetting the burden on U.S. commerce while better serving the public interest.
What Changed?
Under the new proclamation:
- Certain Canadian products listed in Annex I, Part A will be removed from the scope of the 50% Section 338 duties.
- Additional Canadian products listed in Annex I, Part B will be added to the scope of the 50% Section 338 duties.
- The changes apply to merchandise entered for consumption, or withdrawn from warehouse for consumption, on or after October 30, 2026.
Important Reminder: Duty Stacking Continues
The proclamation specifically confirms that the Section 338 duties will continue to apply in addition to any duties imposed under Section 232. Therefore, products subject to both programs will remain subject to stacking, resulting in cumulative duty liability where applicable.
What Importers Should Do
Importers sourcing products from Canada should:
- Carefully review Annex I to determine whether their products have been added to or removed from the Section 338 list.
- Evaluate shipments scheduled to enter the United States on or after October 30, 2026.
- Confirm whether affected products may also be subject to Section 232 duties.
Assess the potential duty impact on landed costs, pricing, and supply chain planning.
Resources
White House 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 – The White House
Annex I Product List:
2026ModifyingAuto338.prc_.AnnexI-3.pdf
If you have questions regarding how these changes may affect your imports, please contact your A.N. Deringer representative.
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.
