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Section 338In effectPublished September 14, 2026

Canadian motor vehicle 50% duty scope changes take effect September 15

A proclamation changes which Canadian products are covered by the additional 50% duty imposed under Proclamation 11048. Some products are added and some are removed, with the revised scope effective for entries on or after September 15, 2026.

Authority
Section 338, Tariff Act of 1930
Status
In effect
Effective
September 15, 2026
Rate
50% additional duty

What this affects

Countries
Canada
Product categories
Motor vehiclesAuto parts

The update

This proclamation modifies the scope of Canadian products subject to the additional ad valorem duty previously imposed under Proclamation 11048. It states that certain products listed in Annex I, Part A become subject to the 50% additional duty, while certain products listed in Annex I, Part B are no longer subject to that duty.

The proclamation keeps the underlying additional duty at 50% and says it applies in addition to duties imposed under section 232 of the Trade Expansion Act of 1962. It also directs that the Harmonized Tariff Schedule of the United States be modified as provided in Annex II to reflect these scope changes.

The revised scope applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on September 15, 2026. The proclamation authorizes CBP, in consultation with other agencies, to issue implementing guidance and to make any necessary technical or ministerial HTSUS corrections through Federal Register notice.

Impact

For importers of goods from Canada, this changes whether the extra 50% duty applies to specific products, which can alter landed cost and entry filing treatment immediately. Because the proclamation says the duty applies in addition to section 232 duties, affected entries may face stacked duty exposure.

What to watch

The source text provided here does not include the annex lists, so the specific products added or removed are not identified in this entry. CBP may also publish implementing instructions or technical HTSUS corrections that affect how the scope is applied at entry.

How to prepare

  1. 1
    Review affected Canadian SKUs

    Match current imports against the annex-based scope once the product lists are available in tariff references.

  2. 2
    Model added duty exposure

    Estimate landed cost changes for entries that may move into or out of the 50% additional duty.

  3. 3
    Confirm section 232 overlap

    Check whether any covered products also face section 232 duties because this action states the duties stack.

  4. 4
    Coordinate with customs broker

    Verify entry instructions, HTSUS treatment, and timing for shipments entered on or after the effective time.

Sources

We summarize published reporting and official notices. Always confirm rates and dates against the Federal Register or your customs broker before acting on them.