US Reworks 50% Canadian Tariffs: Exemptions Out, 100-Plus New Products In

A presidential proclamation signed on October 23, 2026 will strip some Canadian goods from the US 50% Section 338 tariffs and pull more than 100 new products into them, effective 12:01 a.m. Eastern Time on October 30.

That is a seven-day window for importers, forwarders and customs brokers to re-check Harmonized Tariff Schedule classifications before freight starts clearing under the new rules. The measures amend tariffs first imposed in July and already modified once in September, making this the third adjustment to the regime in four months.

What comes off the tariff list?

Several Canadian product groups will no longer carry the additional 50% duty. The exemptions cover:

• certain plywood sheets;
• paper and paperboard products;
• packaging materials;
• selected industrial machinery and refrigeration equipment;
• certain seaweeds and algae;
• non-adhesive sheets, films and foils made from polypropylene.

The seaweed, algae and polypropylene items come from a trade update published by Expeditors, which flagged the classifications importers need to watch.

One caution matters here. The changes affect specific tariff classifications, not entire product categories. A shipper moving paperboard can't assume exemption just because "paperboard" appears on the list. The HTS line item decides, line by line.

What goes on it?

The administration is expanding coverage in the same stroke. More than 100 products join the 50% duty list, including:

• certain paints;
• soaps;
• artificial waxes;
• vinyl flooring;
• fiberboard;
• carpets;
• industrial materials.

Again, the additions hit defined classifications within these categories, not the categories wholesale. That granularity is exactly what makes the October 30 deadline operationally messy: the difference between two adjacent HTS codes can now be 50 percentage points of duty.

How does the timing work?

The White House confirmed the revised duties apply to covered goods entered for consumption, or withdrawn from warehouses for consumption, from 12:01 a.m. ET on October 30, 2026. Goods already entered before that moment keep their existing treatment.

For logistics providers, that cutoff creates a familiar sprint. Cargo sitting in bonded warehouses becomes a planning decision: withdraw before October 30 if the product faces a new duty, hold it if an exemption now applies and paperwork can catch up.

What does this change for shippers and forwarders?

Three practical consequences stand out.

First, USMCA origin offers no shelter. The administration clarified that the additional Section 338 tariffs apply to covered Canadian goods regardless of whether they qualify as originating under the United States-Mexico-Canada Agreement. Certification of USMCA eligibility, long the default workaround in North American trade, doesn't move a covered product out of scope.

Second, stacking is possible. The measures may apply on top of duties imposed under Section 232 of the Trade Expansion Act of 1962, so a product caught by both regimes absorbs both charges. Importers need to map their exposure across the two statutes, not just one.

Third, implementation guidance is still coming. The proclamation authorises US Customs and Border Protection to issue the instructions and regulatory guidance needed to carry out the changes. Brokers should expect CBP bulletins in the run-up to, and possibly after, the effective date — and build slack into clearance timelines accordingly.

The July tariffs, the September modifications and now the October 23 proclamation trace a pattern of continuous scope revision rather than one settled regime. For cross-border trade teams, the October 30 date is less a single event than the latest checkpoint in a moving target, and further tweaks to the Section 338 product lists remain the working assumption.