2026-10-02
Canada: the 50% Section 338 duty is now in the calculation
Goods of Canada on the lists in U.S. note 51 to Chapter 99 (headings 9903.03.12–9903.03.14) have owed an extra 50% under section 338 of the Tariff Act of 1930 since 22 August 2026, with more products added on 15 September. The calculators left it out until now, so every listed Canadian product came out too low. It is now its own layer, with its proclamation and start date, for 202 codes in the calculator's chapters: much of the furniture, seating, lamps and bedding in chapter 94, phones and other electronics, plastics, bags, some apparel, toys and steel structures. It stacks on MFN and the forced labor layer, and USMCA does not remove it. A cotton t-shirt from Canada (6109.10.00) goes from 26.5% to 76.5%, or from 0% to 50% with a USMCA claim. In category mode it applies to knit apparel, bags and toys, whose representative codes are listed. Two codes are only partly listed by 10-digit number (8537.10.91, 9507.10.00); for those the result leaves the layer out and asks you to check yours. Goods from other origins are unchanged. Rate alerts now name this layer when the Canadian lists change.
Affects:US Import TariffLanded CostDropshipping ProfitBreak-Even ROASmethodology