Canada Tariff Changes: Packaging and Some Machinery Exempt From Oct. 30, New Goods Added

President Trump signed a proclamation on Friday, Oct. 23, 2026, that reshuffles which Canadian goods face the 50% additional tariff imposed under Section 338 of the Tariff Act of 1930. Corrugated boxes, certain packing crates, plywood sheets, some paper products and certain machinery and refrigeration equipment come off the list, while certain valves, carpets, waste products and other goods are added. According to the White House, both the removals and the additions take effect on Oct. 30, 2026.

What happened

• Who announced it: Maine Sen. Susan Collins first said the administration would lower some Canada tariffs, and the White House then published a proclamation and a fact sheet the same day.
• What comes off: The White House fact sheet lists plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes. The Washington Post reported the exemptions cover nine product categories, including corrugated paper cartons and boxes, plastic boxes and crates, agricultural sorting and grading equipment, and seaweed and algae products for human consumption.
• What goes on: The fact sheet names certain valves, carpets and waste products “and others.” Global News reported that the added items include cocoa powder, paints and varnishes and shampoo.
• Trade value: Based on 2025 U.S. trade data, Global News estimated about $5.1 billion of imports lose the tariff and about $2.6 billion become newly subject to it.
• Background: The White House says the Section 338 duties were first announced on July 20, 2026, after Canada walked away from trade talks and placed retaliatory tariffs on about $20 billion of U.S. exports. The scope was already changed once, on Sept. 8. The fact sheet says these duties apply whether or not goods qualify under USMCA, and on top of any Section 232 tariffs.

Why it matters for small businesses

Packaging is a cost almost every product seller pays. If your shipping boxes, mailers or crates come from Canadian suppliers, or your U.S. distributor sources them there, the 50% surcharge on those items is set to disappear for goods entered on or after the effective date. Farms, food producers and small manufacturers that rely on Canadian sorting, packing or refrigeration equipment may see lower quotes as well.

The flip side: businesses that import Canadian paints, varnishes, carpets, valves or personal-care items such as shampoo should expect higher landed costs from Oct. 30. Suppliers may pass those costs on quickly, especially ahead of the holiday season.

Tariff lists have changed several times this year, so treat any price change as provisional until your invoice or customs entry confirms it.

What you can do now

1. Check your supplier list. Note which of your materials, packaging or equipment is made in Canada and whether it appears on the added or removed lists. Ask your supplier or customs broker for the exact HTS code.
2. Ask about timing. Rates depend on the date goods are entered for consumption, so ask whether a pending order will clear before or after Oct. 30.
3. Recalculate unit costs. Update your landed cost per item and see if your margin still holds. Our guide on how to price handmade products for profit walks through the math.
4. Plan holiday inventory. If an input is about to get cheaper or more expensive, adjust how much you order now. Tracking stock in a simple inventory spreadsheet makes the decision easier.
5. Watch for official updates. U.S. Customs and Border Protection usually publishes a CSMS bulletin with the precise codes after a proclamation like this one.

This brief is for general information only and is not legal, tax or customs advice.