Trump Revises Section 338 Tariffs on Canadian Products; Changes to Take Effect from 30 October 2026

· Tariff modification: US President Donald Trump signed a proclamation further revising the scope of tariffs on certain Canadian products under Section 338 of the Tariff Act of 1930.

· Products removed: Certain products, including plywood sheets, paper products, machinery, refrigeration equipment, packing crates and boxes, will be removed from the existing tariff coverage.

· Products added: Certain valves, carpets, waste products and other specified goods will be added to the list of products subject to the tariffs.

· Effective date: The changes to product coverage will take effect on 30 October 2026.

· USMCA applicability: The Section 338 tariffs will apply to covered goods regardless of whether they qualify for preferential origin under the United States–Mexico–Canada Agreement (USMCA).

· Additional duties: These tariffs will apply in addition to duties imposed under Section 232 of the Trade Expansion Act of 1962.

· Reason for action: The US administration stated that the revisions respond to Canada’s alleged discriminatory trade practices and retaliatory tariffs on approximately US$20 billion of US exports.

· Legal authority: Section 338 authorises the US President to suspend, revoke, supplement or amend relevant proclamations when considered necessary in the public interest.

· America First trade policy: The administration stated that the measures aim to protect American manufacturers, farmers and workers, encourage domestic manufacturing and address perceived trade imbalances.

· Trade implications: The revised product coverage may affect Canadian exporters and US importers dealing in the specified goods, potentially changing their customs duty costs from 30 October 2026.

[ABS News Service/24.10.2026]

FURTHER COUNTERING CANADA’S DISCRIMINATIORY TREATMENT OF AMERICAN EXPORTS: Today (23.10.2026), to continue addressing Canada’s discriminatory treatment of U.S. commerce, President Donald J. Trump signed a Proclamation pursuant to Section 338 of the Tariff Act of 1930 to further refine the scope of the tariffs on certain Canadian products previously announced on July 20, 2026 and modified on September 8, 2026.

· After Canada walked away from a near-final trade deal with the United States this past summer and imposed new retaliatory tariffs on about $20 billion of U.S. exports, President Trump signed five Proclamations pursuant to Section 338 to ban certain products from Canada and modify the scope of the tariffs on certain Canadian products previously announced on July 20, 2026.

· To continue effectively offsetting the burden to U.S. commerce while better serving the public interest, President Trump is further modifying Proclamation 11048 (Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Motor Vehicles), as amended, by removing certain products — such as plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes — from the scope of the Section 338 tariffs and replacing those products with certain valves, carpets, waste products, and others.

· These Section 338 tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA), and they apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962.

· The product additions and removals will take effect on October 30, 2026.

DEFENDING THE INTERESTS OF AMERICAN WORKERS AND ENSURING FAIR TRADE: President Trump is taking measures to address Canada’s continued and additional retaliation and discrimination against U.S. commerce to protect American farmers, manufacturers, and workers.

· Section 338 authorizes the President to suspend, revoke, supplement, or amend any proclamation under Section 338 whenever the President deems that the public interests require such action.

· President Trump is further refining the scope of the July 20 and September 8 actions to better serve the public interest, and to ensure these measures continue to effectively offset the burden or disadvantage to U.S. commerce from Canada’s discriminatory measures.

· The modified Section 338 tariffs will continue to safeguard American workers from Canada’s discriminatory or unreasonable and unequal practices.

CONTINUING AMERICA FIRST TRADE POLICY: President Trump is using all the tools at his disposal to restore reciprocity in our bilateral trade relationships and protect the economic prosperity and national security of the American people.

· By imposing tariffs to address non-reciprocal foreign trade practices, President Trump is incentivizing companies to reshore jobs and production lines back to American soil. Recent new investments part of $21 trillion in total investments since President Trump returned to office include:

o General Motors is investing over $6 billion in manufacturing across the United States, $4 billion of which will be at its Orion Assembly plant in Michigan. Brussels-based biopharmaceutical company UCB is investing $2 billion in a manufacturing facility in Georgia.

o Japan is investing $21 billion to build two chip factories in New York that will be jointly owned by the United States and Japan and operated by GlobalFoundries.

· In September 2026, for the ninth consecutive month, economic activity in manufacturing continued to expand under President Trump’s leadership, and in July 2026, U.S. manufacturing activity expanded at its fastest pace in over four years.

· While President Trump continues to lock in fair and reciprocal trade deals with nearly twenty trading partners across the globe, Canada continues to retaliate against the United States for its efforts to correct trade imbalances and protect American workers, farmers, and businesses.

· Over the past year and a half, only two countries have chosen to retaliate against President Trump’s tariffs rather than negotiate a deal with the United States: The People’s Republic of China and Canada.

· Today’s action reflects President Trump’s continued efforts to defend American workers and ensure fair trade, offsetting the burden and disadvantage on U.S. commerce from Canada’s discriminatory treatment.