US adds Canadian rugs, shampoo, soap and more to its 50% Section 338 tariff from 30 October 2026
A US proclamation signed on 23 October 2026 changes which Canadian products pay the extra 50% Section 338 duty. Carpets and rugs, shampoo, toilet soap, chest freezers, window air conditioners, hand power tools, canoes and other goods are added; some plywood, packaging and machinery are removed. The change applies to goods entered from 12:01 a.m. ET on 30 October 2026.
On 23 October 2026 the US President signed a proclamation that changes the product list of the 50% additional duty on certain products of Canada under Section 338 of the Tariff Act of 1930. That duty was imposed by Proclamation 11048 of 20 July 2026 and has applied since 22 August 2026; its scope was already changed once on 8 September.
When
The new list applies to goods entered for consumption, or withdrawn from warehouse, on or after 12:01 a.m. eastern time on 30 October 2026. The proclamation sets no exception for goods already in transit, so the date of entry decides.
Added to the 50% duty (Annex I, Part B)
- Carpets, rugs and other textile floor coverings (most lines of HTS 5701–5705, including hand-knotted, kilim-type, woven, tufted and felt), vinyl flooring and rubber floor mats
- Shampoo (3305.10) and toilet soap in bars (3401.11.50)
- Window or wall air conditioners (8415.10.30) and chest freezers up to 800 litres (8418.30)
- Hand-held electromechanical tools other than drills and saws (8467.29)
- Canoes up to 7.5 m, archery equipment, sweetened cocoa powder, some paints, waxes, paper grades, MDF, wood flooring and certain hand-operated steel valves
Removed from the duty (Annex I, Part A)
Thin plywood sheets (up to 6 mm), plastic packing boxes and bags, corrugated cartons and paper sacks, some coated paperboard, seaweed for food, and certain refrigerating, packing and sorting machinery.
Who pays
US importers of record. The duty applies whether or not the goods qualify under USMCA, and on top of any Section 232 duty.
Example: a Canadian-made wool rug with a customs value of $1,000 that enters duty-free under USMCA today would owe $500 in Section 338 duty if it is entered on or after 30 October.
The DutyLens calculator does not add Section 338 duties automatically. For an affected Canadian product, enter 50% in the "Extra duty" field. CBP is expected to publish implementing guidance; check the HTS code of your product against Annex I.