US to Adjust Tariff List on Canadian Goods, Some Materials and Equipment to Be Duty-Free
Cross-border information2026-10-27

AMZ123 has learned that the White House announced Trump signed a proclamation further adjusting tariff coverage on certain Canadian goods under Section 338 of the Tariff Act of 1930. Effective October 30, 2026, some plywood, paper products, machinery, refrigeration equipment, and packing boxes will be removed from the relevant tariff list, while valves, carpets, and waste materials will be added.

The U.S. had already imposed tariffs of up to 50% on about $20 billion worth of Canadian goods; this adjustment further revises measures announced on July 20 and modified on September 8.

The White House said the changes aim to continue addressing discriminatory Canadian trade measures, ease trade burdens on U.S. businesses, and serve the public interest.

Under the proclamation, the following goods will no longer be subject to Section 338 tariffs:

  • Acrylic polymer plates and film (HTS 3920.20.00): non-foam acrylic polymer plates, sheets, film, foil, and strip, not combined with other materials or reinforced.

  • Other plastic packaging containers (HTS 3923.10.90): other plastic boxes, cases, crates, and similar containers for transporting or packing goods.

  • Ethylene polymer packing bags (HTS 3923.21.00): bags, including cone-shaped bags, made of ethylene polymers for transporting or packing goods.

  • Thicker plastic-coated bleached paper and paperboard (HTS 4811.51.20): weighing over 150 g/m² and at least 0.3 mm thick, meeting specified width or sheet sizes.

  • Thinner plastic-coated bleached paper and paperboard (HTS 4811.51.40): weighing over 150 g/m² and less than 0.3 mm thick, meeting specified width or sheet sizes.

  • Corrugated paper packaging boxes (HTS 4819.10.00): cartons, boxes, and cases made of corrugated paper or paperboard.

  • Other paper bags and cone-shaped bags (HTS 4819.40.00): bags and cone-shaped bags of paper, paperboard, cellulose wadding, or cellulose fiber web, not elsewhere classified.

  • Molded or pressed pulp articles (HTS 4823.70.00): goods made by molding or pressing pulp.

  • Other pulp articles (HTS 4823.90.10): pulp articles not elsewhere specified.

  • Certain packaging machinery (HTS 8422.30.91): machinery for filling, closing, sealing, encapsulating, or labeling bottles, cans, boxes, or other containers, and beverage carbonation equipment.

Meanwhile, certain valves, carpets, waste materials, and other goods will be added to the tariff scope. The changes take effect on October 30.

The following seven product categories will be newly subject to the 50% tariff:

  • Unbleached kraft paper (HTS 4804.31.60): uncoated, unbleached kraft paper sold in rolls or sheets, weighing no more than 150 g/m².

  • Composite paper and paperboard (HTS 4807.00.94): not surface-coated or impregnated, sold in rolls or sheets.

  • Self-adhesive paper and paperboard (HTS 4811.41.10): including strips or rolls over 15 cm wide and rectangular sheets with one side over 36 cm and the other over 15 cm when unfolded.

  • Certain plastic-coated printing paper (HTS 4811.59.20): bleached or unbleached printing paper that is coated, impregnated, or plastic-coated, in specified strips, rolls, or sheet sizes.

  • Other plastic-coated paper and paperboard (HTS 4811.59.40): bleached or unbleached, coated, impregnated, or plastic-coated, meeting listed size conditions.

  • Large paper bags (HTS 4819.30.00): bags with a bottom width of at least 40 cm, made of paper, paperboard, cellulose wadding, or cellulose fiber web.

  • Unprinted pressure-sensitive labels (HTS 4821.90.20): unprinted paper or paperboard labels made of pressure-sensitive material.

The White House stressed that these tariffs apply to all listed goods regardless of whether they meet USMCA origin rules, and will be imposed in addition to Section 232 tariffs under the Trade Expansion Act of 1962.

This means USMCA origin compliance does not automatically exempt goods from Section 338 tariffs; importers must still assess costs based on product category and other applicable duties.

The U.S.-Canada tariff dispute has continued to escalate. After U.S. tariff actions, Canada imposed new retaliatory tariffs on about $20 billion of U.S. exports. The U.S. accuses Canada of discriminatory practices in dairy, automobile, and alcohol trade. Canada then imposed tariffs of 15% to 50% on some U.S. goods, matching U.S. tariff rates on corresponding products.

Last month, the U.S. imposed a full ban on about $1 billion of Canadian imports, including alcohol, dairy products, and motorcycles. Trump has previously signed five Section 338 proclamations to ban some Canadian goods and adjust tariff coverage for others. This change is part of continued policy revisions.

According to the White House, Section 338 authorizes the president to suspend, revoke, supplement, or modify proclamations when the president deems it in the public interest. The administration said the changes aim to continue offsetting burdens on U.S. commerce and protect American farmers, manufacturers, and workers. It added that the U.S. will keep using tariffs to counter non-reciprocal trade practices and encourage companies to move jobs and production back to the U.S.

Author ✎ Summer/AMZ123
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Seller Home Review

The two-way tariff list adjustment helps auto parts and home goods sellers reduce costs through exemptions on materials and equipment, while new categories such as valves and carpets face up to 50% stacked tariffs with no USMCA exemption. Affected sellers should immediately review HS codes and evaluate supply chain alternatives.

Source: Cross-border logistics news
Original link: https://www.amz123.com/t/aRBxvYEZ