Section 338 Canada: Proclamation 11076 Adds 100 Lines to the Motor-Vehicle Duty and Removes 22 From October 30, 2026

Proclamation 11076, signed October 23 and published October 30, 2026, removes 22 HTS lines from the 50 percent Section 338 duty that Proclamation 11048 imposed on Canadian goods over Canada's motor vehicle tariff scheme, and adds 100 new ones. The change applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on October 30, 2026 (91 FR 68861, FR Doc. 2026-22292). The rate stays at 50 percent under HTSUS heading 9903.03.14, and the proclamation repeats that the duty applies in addition to any Section 232 duty. In the HTSUS the change is an amendment to U.S. note 51(b)(3), whose list grows from 513 to 591 entries in Revision 22. The alcohol and dairy lists (headings 9903.03.12 and 9903.03.13) are unchanged, as CBP CSMS #70314289 confirms.

Importers of Canadian goods in 18 of this site's product categories. Four categories have Section 338 lines for the first time: cleaning products, medical devices, plumbing fixtures and scientific instruments. Agricultural equipment drops out, because its only annexed line, 8433.60.00, was removed. The largest additions are 43 lines in HTS chapter 57 for textiles and fabrics, 17 for lumber and wood products, 13 for chemicals, and 13 for packaged foods, all of them sweetened cocoa powder under HTS 1806.10. Paper and packaging, which this site prices line by line, gains 8 lines and loses 6.

Section 338 Canada: Proclamation 11076 Adds 100 Lines to the Motor-Vehicle Duty and Removes 22 From October 30, 2026 (effective 2026-10-30). Proclamation 11076, signed October 23 and published October 30, 2026, removes 22 HTS lines from the 50 percent Section 338 duty that Proclamation 11048 imposed on Canadian goods over Canada's motor vehicle tariff scheme, and adds 100 new ones. Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) lets the President impose additional duties on the goods of a country that discriminates against United States commerce. It had gone unused for decades before three proclamations, all signed July 20 and published July 23, 2026, each applied it to a separate annex of Canadian goods: Proclamation 11046 covering alcoholic beverages, 11047 covering dairy, and 11048 covering a broad basket spread thinly across roughly 60 HTS chapters. Each imposes an additional 50 percent ad valorem duty on the goods in its own annex. The three were originally proclaimed for August 19, 2026; Proclamation 11056 (91 FR 54789) delayed the start by three days, so the duties actually apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 22, 2026. The reach is narrow in two directions: it is Canada-only, and within Canada it touches only annexed goods. Through September 14, 2026, an article already subject to Section 232 duties was excluded entirely, stated by name in clause 2 of all three proclamations; from September 15, 2026 (Proclamations 11064 and 11065, CBP CSMS #69851916) that exclusion narrowed to the dairy duty alone, so the alcohol and motor-vehicle-grievance duties now stack on top of Section 232. Through September 14, 2026, passenger vehicles, light trucks, medium- and heavy-duty vehicles, buses and all of their parts stayed off every Section 338 annex under HTSUS U.S. note 51(c); Proclamation 11065 then added two passenger-vehicle lines, 8703.10.50 and 8703.21.01, to the motor-vehicle-grievance annex, so a Canadian vehicle classified under either line now pays its Section 232 duty and the Section 338 duty on top of it. The consequence that matters most for Canadian sourcing is that a USMCA preference claim does not defeat this duty. HTSUS U.S. note 51(a) subjects goods eligible for special tariff treatment under general note 3(c)(i) — the route a USMCA claim takes — to the additional rate regardless, and the Rates of Duty 1-Special subcolumn reads "The duty provided in the applicable subheading + 50%", identical to 1-General. A USMCA-qualifying Canadian good in scope keeps its 0 percent preferential underlying duty and still owes the additional 50 percent. This site includes Section 338 in its figures for wine and spirits (HTS headings 2203 through 2208) and, line by line, for paper and packaging, passenger vehicles, and steel and iron products; for its other categories with lines on a Section 338 annex, the Canada page names the annex entries and the extra 50 percent but does not yet show a total. From 12:01 a.m. eastern time on September 29, 2026 the wine and spirits on the Proclamation 11061 annex, mostly limited to packaged forms, cannot be imported into the United States at all. Importers of annexed Canadian goods should confirm their HTS line against the proclamation annexes and check whether the good is subject to Section 232 — for the alcohol and motor-vehicle-grievance annexes that no longer removes it from Section 338, only from the dairy annex does it still remove it entirely.

Canadian sourcing is the only exposure here: Section 338 reaches annexed Canadian goods and nothing else. The practical checks are (1) whether your HTS line appears in one of the three proclamation annexes — on this site that means wine and spirits (HTS headings 2203 through 2208) and some lines in many other categories, which each category's Canada page lists — (2) whether the good is also subject to Section 232 duties: through September 14, 2026 that excluded it entirely under clause 2 of every proclamation, but from September 15, 2026 it only still does for the dairy annex, and (3) whether you have been budgeting on a USMCA claim, because a USMCA preference claim does not defeat this duty: a qualifying good keeps its 0 percent preferential underlying duty and still owes the additional 50 percent. Most Canadian passenger vehicles, light trucks and their parts stay off every Section 338 annex, but two specific lines, 8703.10.50 and 8703.21.01, were added from September 15, 2026 and now owe the duty on top of Section 232.

• Section 338 Explainer
• Canada — Cleaning Products
• Canada — Medical Devices
• Canada — Plumbing Fixtures
• Canada — Scientific Instruments
• Canada — Textiles & Fabrics
• Canada — Agricultural Equipment
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