The United States is revising its list of Canadian products subject to additional tariffs of up to 50% under Section 338 and is expected to take place on October 30, 2026. The update changes which goods face higher import duties and could affect cross-border shipping costs for businesses moving freight between Canada and the U.S.
What happened?
On October 23, the U.S. announced changes to the list of Canadian products covered by the additional tariffs. Certain goods have been added to the list, like carpets, valves, air conditioners, and personal care products. However, several products were removed from the list. Those include some plywood, packaging materials, refrigeration equipment, and machinery.
The update depends on product classification, so businesses should consider checking relevant Harmonized Tariff Schedule (HTS) codes to determine exactly what is affected. Even USMCA-eligible shipments are not automatically exempt from these duties.
Impact on Shipping and Freight
- Changing import costs: Newly affected products could cost more to import, while products removed from the list may cost less.
- Freight quote adjustments: Freight forwarders will have to look through current quotes and recalculate landed costs.
- Customs compliance: Incorrect tariff classifications may cause unforeseen charges or clearance issues.
- Continued uncertainty: Further potential changes to U.S.-Canada trade policy could make the cost of shipping even more unpredictable.
Recommendations to Freight Forwarders
Freight forwarders who work on shipments from Canada to the United States need to take a look at goods that are to be delivered in the United States starting from October 30. Comparing tariff classifications with the official list will help in determining which shipments are subject to changes in cost.
Forwarders should also inform their customers about potential duty changes and monitor future updates of import tariffs in the U.S. to avoid unexpected costs.
Conclusion
The modified list of Section 338 tariffs may affect the cost of shipping certain Canadian products to the U.S. Freight forwarders should verify tariff classifications, review freight quotes, and keep an eye on trade policy changes.