Section 338 Tariff Update
Updated November 2, 2026: 22 HTS codes were removed from Section 338 coverage, and 100 were added. 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, in addition to 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.
- CBP removed 22 HTS codes from the Section 338 tariff list.
- 100 new HTS codes have been added and are now subject to the additional 50% tariff.
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.
Check Whether Your Products Are Affected
Depending on your products' HTS classifications, the duties applied to your US-bound shipments may change. Check your product's full classification against the updated HTS code list, effective October 30, 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 we did not collect the correct Section 338 duty when you purchased your label but it applies to the shipment, we will charge the difference 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.
