On October 23, 2026, President Trump signed a proclamation under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) further modifying the list of Canadian products subject to the 50 percent additional duty imposed by Proclamation 11048, the motor-vehicles action of July 20, 2026. The proclamation removes 21 HTSUS subheadings from the duty and adds 96 others. The changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on October 30, 2026.
This is the second change to the scope of Proclamation 11048. The first, Proclamation 11065 of September 8, 2026, took effect on September 15.
Products removed
Annex I, Part A, lists the products that will no longer be subject to the 50 percent duty. They include:
- certain thin plywood sheets of nonconiferous wood (subheadings of 4412.33 and 4412.34)
- certain coated paper and paperboard, corrugated cartons and boxes, paper sacks and bags, and molded paper-pulp articles
- certain plastic sheets, packing boxes and crates, and polyethylene sacks and bags
- certain refrigerating and freezing equipment, packing and container-filling machinery, and agricultural produce-sorting machines
- edible seaweed
Products added
Annex I, Part B, lists the products that will become subject to the 50 percent duty, except articles of civil aircraft that meet the criteria of General Note 6 of the HTSUS. They include:
- sweetened cocoa powder (subheadings of 1806.10)
- certain paints and varnishes, caulking compounds, shampoos, soaps, lubricating preparations and waxes
- certain chemical residual products and municipal, sewage-sludge and clinical waste (3825.10 through 3825.30)
- certain plastics, vinyl flooring and rubber floor mats
- certain wood products, including MDF and fiberboard, wood flooring panels, builders’ joinery, packing boxes and wooden coffins
- certain paper and paperboard, including kraft paper, self-adhesive paper and paper labels
- most carpets and other textile floor coverings of headings 5701 through 5705
- window or wall air conditioners, chest freezers, certain handheld electromechanical tools, and certain taps, cocks and valves (8481.80.30)
- canoes, electro-surgical instruments, demonstration apparatus, certain spectrometers, and archery equipment
The annex descriptions are “for informational purposes only.” The HTSUS subheadings control, together with the HTSUS modifications in Annex II.
Other terms
- No USMCA exception. According to the White House fact sheet, the Section 338 duties apply whether or not a good originates under the USMCA.
- Stacking with Section 232. The proclamation provides that the duties apply in addition to duties imposed under Section 232.
- CBP implementation. CBP is authorized to issue implementing guidance and to make technical corrections to the annexes by Federal Register notice. As of this alert, we have not identified CBP guidance for the October 30 changes. CBP implemented the September changes through CSMS messages, including CSMS # 69851916, and similar guidance may follow.
Immediate Considerations
Importers of Canadian goods should compare their HTSUS classifications against both parts of Annex I before October 30. For newly covered products, the timing of entry or warehouse withdrawal will determine whether the 50 percent duty applies. Importers of removed products should confirm that the duty is no longer claimed on entries on or after October 30. Given how often this scope has changed, classification of affected products should also be confirmed at the full ten-digit level.
Please contact us should you wish to discuss how these changes affect your imports from Canada.