The story so far
edited Oct 24 · 1 paragraph changedWhat is happening
U.S. agricultural and forestry producers face shifting costs as the White House modifies 50% Section 338 duties on Canadian imports to provide relief to specific domestic sectors 12. President Trump signed a proclamation on October 23, 2026, to remove duties on plywood sheets, certain paper products, refrigeration equipment, and packing materials such as plastic boxes and crates 13. These exemptions, effective October 30, 2026, specifically target products used by blueberry, potato, apple, and seaweed producers 23. To offset these removals, the administration added certain valves, carpets, and waste products to the tariff list 12.
What to watch
The Office of the U.S. Trade Representative issued a formal notice implementing the October 23 proclamation to modify Section 338 duties 12. The effective date for the tariff removal being set and published in the Federal Register would formalize the October 30 change 14. Detailed descriptions of new levies on valves, carpets, and waste products in a subsequent Federal Register notice would clarify the scope of the offset 1. Customs data showing the tariff rate for the affected Canadian goods at 0% after the effective date would verify the implementation of the exemptions.
updated Oct 24 · 1 earlier version
The USTR issued the formal notice implementing the proclamation [12].
The U.S. Trade Representative publishing an official announcement of the tariff reduction would confirm the administrative transition. The effective date for the tariff removal being set and published in the Federal Register would formalize the October 30 change 14. Detailed descriptions of new levies on valves, carpets, and waste products in a subsequent Federal Register notice would clarify the scope of the offset 1. Customs data showing the tariff rate for the affected Canadian goods at 0% after the effective date would verify the implementation of the exemptions.
Read the full brief · how we got here
How we got here
The modifications follow the breakdown of trade negotiations in late August 2026 and precede the midterm elections scheduled for November 3 25. Separately, the U.S. Department of Commerce announced the final results for the seventh administrative reviews of softwood lumber anti-dumping and countervailing duties on October 14, 2026 8. U.S. Customs and Border Protection previously issued guidance on filing entries as Section 338 duties took effect earlier in the year 1011.
References · 9
- 1ghy.com — U.S. Imposes Section 338 Tariffs on Certain Canadian Imports
- 2nbcnews.com — Trump administration cancels some Canada tariffs amid close midterm races
- 3toronto.citynews.ca — U.S. to remove 50% tariffs on some Canadian products as trade war becomes ballot box issue
- 4newsquawk.com — White House says President Trump has further modified Canadian products subject to tariffs under Section 338; tariff changes will take effect on 30th October 2026 | Newsquawk
- 5yournews.com — Trump Expected to Lift 50% Tariffs on Some Canadian Goods as Maine Sen. Collins Seeks Trade Relief Before Midterms – [your]NEWS
- 8international.gc.ca — Softwood lumber
- 10taxnews.ey.com — US Customs and Border Protection issues guidance on filing entries as Section 338 duties on certain Canadian goods take effect
- 11content.govdelivery.com — CSMS # 64297449 - GUIDANCE: Additional Duties on Imports from Canada
- 12ustr.gov — 1 Billing Code 3390-F4 OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
What would close this
1 of 4 metTimeline
2newest firstUSTR formalizes Section 338 tariff exemptions for Canadian agricultural and forestry supplies
The Office of the U.S. Trade Representative (USTR) issued a formal notice implementing President Trump's October 23 proclamation to modify Section 338 duties on Canadian goods 1. The action provides targeted relief for U.S. growers by removing 50% duties on essential packing and processing materials while adding new categories to the tariff list to maintain trade pressure 1.
- The USTR notice confirms the removal of duties on Canadian plywood, paper products, refrigeration units, and plastic crates effective October 30, 2026 1.
- New levies are established for Canadian-origin valves, carpets, and specific waste products to offset the revenue impact of the exemptions 1.
- The administrative action follows the breakdown of bilateral trade negotiations in August 2026 1.
Full analysiswritten from the full pages behind this update
What happened
The Office of the U.S. Trade Representative (USTR) issued a formal notice to modify Section 338 duties on Canadian goods following a presidential proclamation signed on October 23, 2026 1. The action removes 50% duties on specific Canadian imports, including plywood sheets, certain paper products, refrigeration units, and plastic packing materials such as boxes and crates 1. These exemptions are scheduled to take effect on October 30, 2026 1. To maintain trade pressure, the USTR added new categories to the tariff list, including Canadian-origin valves, carpets, and specific waste products 1. The administrative changes follow the cessation of bilateral trade negotiations in August 2026 1.
Why it matters
The removal of duties provides targeted relief for U.S. agricultural sectors that rely on Canadian materials for processing and distribution 1. Specifically, the USTR identified blueberry, potato, apple, and seaweed producers as the primary beneficiaries of the duty removals on packing and refrigeration equipment 1. By eliminating the 50% levy on these items, the administration aims to lower input costs for domestic growers 1. Conversely, the addition of valves, carpets, and waste products to the tariff list serves as a revenue offset to balance the exemptions granted to the forestry and agricultural supply chains 1. The timing of these modifications coincides with the period following the August 2026 breakdown in trade talks 1.
What's next
The exemptions for plywood, paper products, and plastic crates are set to begin on October 30, 2026 1. A subsequent notice in the Federal Register is expected to provide the specific Harmonized Tariff Schedule (HTS) subheadings and detailed descriptions for the new levies on valves, carpets, and waste products 1. Implementation of the 0% rate for the exempted goods will be verified by U.S. Customs and Border Protection data following the October 30 effective date 1. The USTR will continue to monitor the impact of these modifications as part of the broader trade enforcement actions initiated earlier in the year 1.
When we started following: U.S. modifies Section 338 tariffs on Canadian goods, exempting agricultural and forestry items effective October 30
President Trump signed a proclamation on October 23, 2026, modifying the scope of 50% Section 338 duties on Canadian imports 1. Effective October 30, 2026, the U.S. will remove duties on plywood sheets, certain paper products, refrigeration equipment, and packing materials including plastic boxes and crates 13. These exemptions include products for blueberry, potato, apple, and seaweed producers 23. To offset these removals, the administration added certain valves, carpets, and waste products to the tariff list 12. The modifications follow the late August breakdown of trade negotiations and precede the November 3 midterm elections 25. Separately, the U.S. Department of Commerce announced final results for the seventh administrative reviews of softwood lumber anti-dumping and countervailing duties on October 14, 2026 8.