U.S. Customs Revises 50% Tariffs on Canadian Goods: What Importers Need to Know

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U.S. importers of Canadian goods face another round of changes to additional tariffs, following a new Presidential Proclamation issued October 23, 2026. U.S. Customs and Border Protection (CBP) has announced modifications to the products subject to the 50% additional duties imposed under Section 338, including the removal of certain tariff classifications and the addition of 100 others.

The changes took effect October 30, 2026, making it important for importers, customs brokers, and trade compliance professionals to review their product classifications and entry procedures.

Understanding the Latest Changes to Section 338 Duties

The latest modifications stem from the October 23 Presidential 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.

On August 18, Proclamation 11056 temporarily suspended the additional duties for three days, with the 50% duties taking effect on August 22. Subsequent proclamations issued September 8 modified the scope of products subject to these duties.

The October 23 Proclamation further revises the list of affected products under HTSUS heading 9903.03.14.

Which Products Are Affected?

Effective October 30, 2026, 21 Harmonized Tariff Schedule of the United States (HTSUS) classifications were removed from the list of products subject to the 50% additional ad valorem duties under heading 9903.03.14. These include classifications covering certain food products, plastic packaging, plywood, paper products, refrigeration equipment, and agricultural machinery.

At the same time, 100 additional HTSUS classifications were added to heading 9903.03.14, expanding the range of Canadian-origin products subject to the additional duties. The expanded list covers a broad range of goods, including agricultural and botanical products, chemicals, plastics, wood products, textiles, machinery, electronics, furniture, and other manufactured goods.

Importers should consult CBP's updated classification list rather than relying on previous tariff reviews. The changes apply based on the applicable HTSUS classification and the product's Canadian origin, not simply the country from which the goods are shipped.

Importantly, there are no changes to the classifications covered under HTSUS headings 9903.03.12 and 9903.03.13.

Understanding the Applicable Duty Provisions

CBP's guidance identifies several HTSUS provisions governing the additional duties on Canadian products:

• 9903.03.12: Covers articles of Canada specified under subdivision (b)(1) of U.S. Note 51, subject to a 50% additional duty.

• 9903.03.13: Covers articles specified under subdivision (b)(2), also subject to a 50% additional duty.

• 9903.03.14: Covers articles specified under subdivision (b)(3), subject to a 50% additional duty, with the October 30 modifications.

• 9903.03.15: Provides a 0% additional duty treatment for specified categories, including certain steel, aluminum, copper, automotive, wood, semiconductor, and patented pharmaceutical products. As of September 15, 2026, only goods subject to heading 9903.03.13 are eligible to claim this provision.

• 9903.03.16: Provides a 0% additional duty treatment for qualifying Canadian civil aircraft, their engines, parts, components, and certain flight simulators.

  
  

These provisions do not eliminate other applicable trade measures. Products covered by these headings may remain subject to antidumping and countervailing duties, taxes, fees, and other applicable charges.

What Importers Should Do Now

Following the October 30 changes, importers and customs brokers should review their customs entry procedures and product classifications to ensure that the correct duties are being applied.

Businesses importing goods from Canada should take the following steps to remain compliant with the updated requirements:

1. Review Product Classifications: Check HTSUS classifications against CBP’s updated list to identify changes affecting heading 9903.03.14.

2. Verify Duty Calculations: Ensure the correct duty rates are applied based on product classifications and entry dates.

3. Review Foreign Trade Zone Inventory: Confirm goods are admitted under the appropriate status and applicable duties are assessed upon entry for consumption.

4. Evaluate Chapter 98 Eligibility: Determine whether goods qualify for duty exceptions or special valuation rules under Chapter 98.

5. Assess Drawback Opportunities: Identify opportunities to recover eligible duties paid under headings 9903.03.12 through 9903.03.14.

   
   

Staying Ahead of Changing Tariff Requirements

Changes to U.S. tariff regulations can directly affect import costs and compliance obligations, even when a product’s classification remains unchanged.

Importers should review CBP’s updated guidance to determine how the October 30 changes affect their shipments and duty payments. Staying informed, verifying duty rates, and maintaining accurate customs filings can help businesses avoid unexpected costs, penalties, and shipment delays.

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