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Trump changes which Canadian products face Section 338 tariffs from October 30

A White House fact sheet lists products being added to and removed from the tariff scope. The changes are scheduled to take effect on October 30.

Donald Trump shakes hands with Japanese Prime Minister Shinzō Abe in the Oval Office.
Donald Trump and Shinzō Abe shake hands in the Oval Office at the White House in 2018. This is a file photograph. Shinzō Abe and Donald Trump in the Oval Office 2018 — Official White House Photo (resized and converted to WebP). Public domain.Image sourceImage licence: Public domain
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President Donald Trump signed a proclamation on October 23 changing which Canadian products face US tariffs under Section 338 of the Tariff Act of 1930, according to a White House fact sheet. The additions and removals are scheduled to take effect on October 30, giving businesses trading in the affected goods a new product scope to check.

The White House said the proclamation further modifies Proclamation 11048, as amended, a measure concerning additional duties on Canadian products connected to motor vehicles. It presented the change as another revision to tariff actions announced on July 20 and modified on September 8, rather than a new tariff program.

Which Canadian products change tariff status

The administration said it is removing certain plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes from the Section 338 tariff scope. It said certain valves, carpets, waste products and other goods will be added. Those descriptions are examples, and the White House fact sheet does not identify the full product classifications in its account of the change.

For goods that remain covered or are newly added, the White House said the Section 338 tariffs apply regardless of whether they originate under the United States-Mexico-Canada Agreement. It also said the duties apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962. That distinction matters for traders assessing whether an agreement-based origin claim or another tariff already affecting a shipment changes its treatment under this measure.

How the October change fits earlier tariff actions

In a September 8 statement, the Office of the United States Trade Representative said earlier Section 338 actions included bans on certain Canadian products and changes to the scope of previously announced measures. The office described the July 20 actions as addressing motor vehicles, alcoholic beverages and dairy. It said Section 338 authorizes duties of up to 50% in specified circumstances; that statutory ceiling is not a stated rate for every product affected by the October revision.

The White House attributed the latest revision to what it called Canada's discriminatory treatment of US commerce and said the change was intended to offset a burden on US trade. That is the administration's rationale for the proclamation. The stated October 30 effective date is the next scheduled step for the listed additions and removals.

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