US Re-Cuts the 50% Section 338 Duty List on Canadian Products — Effective October 30, 2026

What happened

On October 23, 2026, the President signed Proclamation 11076, the second re-cut of the Section 338 duty list imposed on products of Canada over the motor-vehicle dispute. The mechanics:

1. Annex I, Part A — Canadian products listed there are no longer subject to the additional 50 percent ad valorem duty imposed under Proclamation 11048 (as amended).
2. Annex I, Part B — Canadian products listed there are now subject to that 50 percent duty.
3. The HTSUS is correspondingly modified per Annex II, and the 50 percent duty stacks in addition to any Section 232 duties that already apply.

Both changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on October 30, 2026 — so they are already in force as you read this. The proclamation does not publish the product lists in its text; the annexes carry the HTS detail, and CBP is authorized to issue implementation guidance and technical corrections.

How the Canada Section 338 dispute got here

Date	Action
2026-07-20	Proclamation 11048 finds Canada's motor-vehicle tariff scheme discriminates against U.S. commerce; imposes additional duties under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338), scheduled effective Aug 19.
2026-08-18	Proclamation 11056 suspends the duties for 3 days after Canada commits to remove the discrimination.
2026-08-21	Per Proclamation 11076's recital, Canada reneged on the commitment and ceased negotiating in good faith.
2026-08-22	The suspension lapses at 12:01 a.m. ET; the Proclamation 11048 duties take effect.
2026-09-08	Proclamation 11065 makes the first scope modification (with same-day proclamations excluding certain Canadian products from importation).
2026-10-23	Proclamation 11076 signs the second scope modification.
2026-10-30	Part A relief / Part B additions take effect at 12:01 a.m. ET.

What this means for cross-border sellers

If you import Canada-origin goods in motor-vehicle-adjacent categories, your duty bill may have just moved 50 points — in either direction. The proclamation moves products off and onto the taxable list, so the same HTS line can flip from "50% extra" to "no extra" or the reverse. Pull Annex I Parts A and B and check every Canada-origin SKU you bring in; the annexes are the only authoritative list.

The 50 percent stacks on everything else. The proclamation states the duty applies in addition to Section 232 duties — so a steel-content part can owe MFN + Section 232 steel + 50 percent Section 338, layered. Model the full stack before you quote: the tariff calculator handles layered programs, and the HTS lookup gets you to the right line first.

Entry timing decided who pays. Goods entered for consumption before 12:01 a.m. ET October 30, 2026 are treated under the prior scope; entries on or after that moment use the new lists. There is no grandfathering for goods still on the water — only the entry date counts.

Country of origin is the trigger. The duty targets products of Canada as defined by customs origin rules — not goods merely shipped via Canada. Keep origin documentation tight, especially for goods with manufacturing steps in more than one country.

What to do now

1. Pull Annex I Parts A/B (and Annex II HTSUS modifications) from the proclamation and map them against your Canada-origin SKUs.
2. Re-quote anything affected — a 50-point swing breaks most margins; decide whether to absorb, re-source, or re-route.
3. If you had goods enter on or around October 30, reconcile what your broker declared against the new lists — misclassification here is a 50 percent exposure, not a rounding error.
4. Watch the Federal Register: CBP is authorized to issue technical corrections to the annexes, and Section 338 lets the President suspend, revoke, or amend the whole scheme whenever the Administration deems the public interest requires.

How we read it

Two scope re-cuts in seven weeks, moving products in both directions, reads like tariff dial-turning rather than a fixed wall: the Administration is tuning pressure on Ottawa line by line. For sellers that is genuinely double-edged — today's Part A relief can be tomorrow's Part B. The only stable planning assumption is that Canada-origin exposure can move 50 points with a signed proclamation and a two-week fuse (11076 was signed October 23 and took effect October 30). Significant moves land in our Tariff Radar within hours of publication.