US modifies Canada tariffs; carpets added, packaging removed



US modifies Canada tariffs; carpets added, packaging removed

US President Donald Trump has signed a proclamation modifying the scope of Section 338 tariffs on certain Canadian products, removing items such as plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes, while adding certain valves, carpets, waste products and others. The product additions and removals will take effect on October 30, 2026.

The proclamation was issued under Section 338 of the Tariff Act of 1930 and further modifies tariffs on certain Canadian products previously announced on July 20, 2026 and modified on September 8, 2026. The tariffs apply to all covered goods regardless of whether they originate under the United States-Mexico-Canada Agreement (USMCA), and they apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962, the White House said in a press release.

US has revised Section 338 tariffs on Canadian goods, adding carpets and valves while removing packing boxes, plywood sheets, paper items and equipment.
Effective October 30, 2026, the changes apply regardless of USMCA origin and alongside Section 232 tariffs, with some duties at 50 per cent.
The move further modifies July and September measures imposed after US-Canada trade talks broke down.

The affected measures include 50 per cent duties on a range of Canadian imports. Supply Chain Dive said Section 338 allows a US president to install tariffs of up to 50 per cent to address discrimination against US commerce, and that Trump used it in August after negotiations between the US and Canada broke down.

Trump said in the proclamation that senior executive branch officials had advised him that revising the list would still offset the alleged discrimination while serving the public interest, Supply Chain Dive reported. The outlet identified cocoa powder, carpets and air conditioners among imports now subject to the levies.

In its fact sheet, the White House said Trump was further refining the measures to offset the burden to US commerce while better serving the public interest. It said Canada had walked away from a near-final trade deal this past summer and imposed new retaliatory tariffs on about $20 billion of US exports, after which Trump signed five proclamations under Section 338 to ban certain products from Canada and modify the scope of the July 20 tariffs.

Fibre2Fashion News Desk (SG)



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