Section 338 Tariff Update

Updated September 15, 2026: New HTS classifications have been added to Section 338 coverage. See "What Changed" below for details.

Starting August 19, certain goods of Canadian origin entering the United States became subject to an additional 50% tariff, on top of other applicable duties, tariffs, taxes, and fees.

What Changed (September 15, 2026 Update)

Effective 12:01 a.m. ET on September 15, 2026, US Customs and Border Protection has changed Section 338 coverage for certain Canadian-origin goods.

• US Customs and Border Protection has added 122 HTS classifications under 9903.03.12 and 9903.03.14. Coverage under 9903.03.13 is unchanged.
  
  
• Fully removed from Section 338 coverage: 2501.00.00,2523.29.00,2940.00.60, 4803.00.40,7801.10.00
  
  
• Coverage narrowed to specific 10-digit codes: 2208.30.60,2208.70.00,4818.90.00,8537.10.91,9507.10.00
  
  
• Narrowed codes are fully exempt. Specific 10-digit classifications under them still carry the additional 50% duty.
  
  

The Section 232 overlap exclusion (9903.03.15) now applies only to eligible goods under 9903.03.13. The civil aircraft exclusion (9903.03.16) is unchanged.

Read the full CBP notice

Check Whether Your Products Are Affected

Check your product's full classification against the updated HTS code list, effective September 15, before shipping.

Important: Previously Purchased Labels

Purchasing a label does not lock in tariff treatment. The additional 50% duty is based on the US customs entry date, not when you purchase your label or ship.

If the correct Section 338 duty was not collected when your label was purchased but applies to the shipment, the difference will be charged back to your Stallion account as an adjustment once we receive the final amount from our customs broker.

CUSMA/USMCA qualification does not exempt affected goods. Other applicable duties, taxes, and fees continue to apply.

What Happens Next?

Stallion understands these changes add uncertainty to your shipping decision, and we don't take that lightly. We will continue monitoring developments closely and communicate any further changes to Section 338 coverage as soon as we have confirmed details.

If you have questions about how this affects your specific shipments, our team is here to help.

Thank you.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.