US alters Section 338 50% tariff list for Canadian paper and packaging goods
The United States has revised the range of Canadian-origin goods subject to its additional 50% Section 338 duty. It removes corrugated boxes, some paper sacks and bags, moulded pulp articles and plastic-coated bleached paperboard, and adds unbleached kraft paper, self-adhesive paper, pressure-sensitive labels and other graphic and coated paper grades. The changes apply to goods entered from 12:01 a.m. eastern time on 30 October 2026, on top of any Section 232 duties. It is the second revision of coverage since the duties took effect on 22 August 2026, after one on 8 September.
Why this mattersA further reshuffle of which Canadian paper, board and label categories face a 50% US duty changes sourcing costs and competitiveness for converters and brand owners trading across the border.
- Changes take effect for goods entered for consumption at or after 12:01 a.m. eastern time on 30 October 2026
- Removed from the 50% duty: corrugated boxes (HTSUS 4819.10.00), other paper sacks and bags (4819.40.00), moulded and other pulp articles (4823.70.00, 4823.90.10) and plastic-coated bleached paper and paperboard over 150 g/m² (4811.51.20, 4811.51.40)
- Newly added to the 50% duty: unbleached kraft paper (4804.31.60), self-adhesive paper (4811.41.10), plastic-coated printing and other paper (4811.59.20, 4811.59.40), paper sacks with a base of 40 cm or wider (4819.30.00) and unprinted pressure-sensitive labels (4821.90.20)
- The Section 338 duties apply in addition to duties under Section 232 of the Trade Expansion Act of 1962
- The 50% duty took effect on 22 August 2026 after a three-day suspension under Proclamation 11056; Proclamation 11065 first revised the coverage on 8 September 2026
- The duties stem from Proclamation 11048, based on a determination that Canadian motor-vehicle tariff arrangements discriminated against US commerce