Table of Contents
September 15, 2026
. 1 min

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.

Get started today! Ship faster, smarter, cheaper with Stallion.

Get Started Today.  Sign Up for Free!

More from the blog

A white delivery van with a question mark above it

How to Offer Free Shipping in Canada: An Online Seller's Guide

Free shipping is one of the most powerful conversion tools in eCommerce. But for some sellers, it is also one of the most confusing strategies they can set up. Canadian sellers experience more issues than their US counterparts, which makes "just offer free shipping" harder to execute than it sounds. But don't worry, because this […]
Delivered Duty Unpaid (DDU) vs. Delivered Duty Paid (DDP)

DDU vs. DDP: Which Shipping Method Should You Choose?

Are you shipping internationally, especially to US-based customers? If so, you might have already heard of the Incoterms DDU vs DDP. These shipping terms can affect your customer's experience, your costs, and how often your parcels get stuck at customs. But what are these terms actually? This guide breaks down what each one means, who […]
A white delivery truck with a dollar coin

2026 Peak Season Surcharges: What Canadian Sellers Need to Know

Peak season brings higher volumes and added carrier costs. As Q4 approaches, carriers often introduce temporary surcharges across select services and shipment types. For 2026, some carriers have started releasing their peak-season pricing, with more announcements expected in the coming weeks. These surcharges vary by carrier, service, destination, weight, and package size, and may apply […]

Join our community

Follow @ShipStallion
Can our fellow Torontonians relate? -#smallbusiness #business #entrepreneur #socialmedia #shipping #ecommerce #canadianecommerce #shopify #poshmark #b2b #saas #etsy #ebay #canada #canadiansmallbusiness #shoplocalcanada #entrepreneur #toronto
Here’s your quick hassle free shipping from 🇨🇦 to 🇺🇸 as a business owner! -Any questions?! Leave them 👇🏻 and save this video so you don’t forget! -#smallbusiness #business #entrepreneur #socialmedia #shipping #ecommerce #canadianecommerce #shopify #poshmark #b2b #saas #etsy #ebay #canada #canadiansmallbusiness #shoplocalcanada #entrepreneur
Meet @drinkbenny a 🇨🇦 female founded energy drink brand! Instead of focusing on their products, they’re taking a unique approach by hosting in person events in different Canadian cities to offer an experience for their community 🧡- What are your thoughts on in person events? 💭 -#smallbusiness #business #entrepreneur #socialmedia #shipping #ecommerce #canadianecommerce #shopify #poshmark #b2b #saas #etsy #ebay #canada #canadiansmallbusiness #shoplocalcanada #entrepreneur
Do you know the difference between DDU and DDP when shipping internationally 🌏 ?-Questions? Leave them below! 👇🏻 -#smallbusiness #business #entrepreneur #socialmedia #shipping #ecommerce #canadianecommerce #shopify #poshmark #b2b #saas #etsy #ebay #canada #canadiansmallbusiness #shoplocalcanada #entrepreneur
Here’s a quick hack to save time from choosing multiple postage options ↪️ Turn on the lowest postage rate automation to save you time! -Questions? Leave them below! 👇🏻 -  #smallbusiness #business #entrepreneur #socialmedia #shipping #ecommerce #canadianecommerce #shopify #poshmark #b2b #saas #etsy #ebay #canada #canadiansmallbusiness #shoplocalcanada #entrepreneur
This error message is only visible to WordPress admins
There has been a problem with your Instagram Feed.

Join Stallion to save up to 75% on shipping today!

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram