Canada Tariff Update: Major Changes Take Effect September 15, 2026
Importers sourcing products from Canada should prepare for another significant trade compliance change as the U.S. government expands the scope of products subject to Section 338 duties.
According to the latest guidance issued by U.S. Customs and Border Protection (CBP), 122 additional Harmonized Tariff Schedule (HTS) classifications have been added to the list of Canadian-origin products subject to an additional 50% ad valorem duty under HTSUS 9903.03.12 and 9903.03.14.
These changes stem from the Presidential Proclamations issued on September 8, 2026, and become effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on September 15, 2026.
Why This Update Matters
While many trade updates focus solely on increases in duty rates, this change is particularly impactful because it expands the number of products affected by the Section 338 program.
As a result, importers that were previously unaffected by these measures may now find their products subject to substantial additional duties due to the inclusion of new HTS classifications. This may create significant consequences for landed costs, pricing strategies, inventory planning, supplier agreements, and overall supply chain operations.
Businesses importing from Canada should review their product classifications immediately to determine whether any newly covered tariff numbers apply to their shipments.
Key Changes Introduced by CBP
1. Expansion of the Section 338 Product List
CBP has added 122 new HTS classifications to the existing list of Canadian goods subject to Section 338 duties.
Products falling under these newly added classifications may now face an additional 50% duty, making classification accuracy more important than ever.
2. Certain Products Removed from Scope
While many classifications have been added, CBP has also removed several HTS codes from the duty program.
The exclusions affect selected products within categories such as:
- Alcoholic beverages
- Mineral products
- Paper and paperboard products
- Metal products
- Electrical equipment
- Sporting goods
Importers should review these removals carefully, as they may create opportunities for cost savings on qualifying products.
3. Additional Duty Rate Remains at 50%
Products classified under the following tariff provisions remain subject to a 50% additional duty:
- HTSUS 9903.03.12
- HTSUS 9903.03.13
- HTSUS 9903.03.14
Companies should evaluate the financial impact of these duties on future imports and ensure proper customs entry procedures are followed.
4. Important Exceptions Continue to Apply
Certain products continue to qualify for 0% additional duty treatment under specific provisions and exemptions.
Examples include:
- Civil aircraft and related products
- Certain vehicle-related articles
- Steel derivatives covered by separate provisions
- Aluminum derivatives covered by separate provisions
- Semiconductor products
- Wood and lumber products covered by designated exemptions
- Specified patented pharmaceutical products
Importers should verify eligibility carefully, as exemption requirements remain highly product-specific.
5. Special Programs Require Additional Attention
Importers utilizing special customs programs should pay close attention to the updated guidance.
This includes shipments involving:
- Chapter 98 provisions
- Foreign Trade Zones (FTZs)
- Duty drawback programs
Special filing procedures, reporting requirements, and exceptions may affect how these duties are assessed and administered.
Actions Importers Should Take Now
With the September 15 implementation date now in effect, businesses should take proactive measures to minimize financial and compliance risks.
Recommended actions include:
✅ Review all imported products and verify HTS classifications
✅ Identify whether any products fall within the newly added tariff provisions
✅ Evaluate potential increases in landed cost and duty exposure
✅ Review purchase orders currently in production or transit
✅ Assess pricing strategies and customer contracts
✅ Coordinate with customs brokers and trade compliance teams
✅ Confirm eligibility for any available exclusions or special provisions
✅ Prepare internal stakeholders for potential cost impacts
How Point Global Logistics Can Help
The complete updated HTS Code List affected by these changes is available below in this article, including all newly added classifications and products removed from scope. We encourage importers to review the list carefully and assess whether any of their products may be impacted by the expanded Section 338 duties. For guidance on classification, duty exposure, or compliance requirements, our Customs Team is available to assist and answer any questions. Let's connect!
Early planning, classification reviews, and coordination with customs professionals will be essential to maintaining compliance and managing costs under the revised requirements.
Source: U.S. Customs and Border Protection (CBP), Cargo Systems Messaging Service (CSMS) #69851916, “Modifying Section 338 Additional Duties on Certain Goods of Canada,” September 2026.