What changed
100 HTS lines added to the 50% duty on Canadian goods, 22 removed
When
Signed Oct 23, 2026; effective 12:01 a.m. ET Oct 30, 2026
Who it affects
Importers of Canadian-origin goods, including Amazon and DTC brands
What to do
Check 8-digit HTS codes, then reprice affected ASINs

Key takeaways

  • The 50% duty reached 100 more Canadian product lines on October 30, and USMCA gives no relief.
  • Entry date decides, so stock in transit on October 30 can still be caught.
  • On our $14.99 example, the duty cuts break-even ACoS from 35% to 21.6%.

How the Canada tariff list grew in 2026

  1. Three Section 338 proclamations signed

  2. 50% duty takes effect

  3. First product list change

  4. New proclamation signed

  5. CBP issues filing guidance

  6. 100 lines added, 22 removed

What changed on October 30

CBP confirmed the change in CSMS message 70314289 on October 29, one day before it took effect. It covers goods entered for consumption, or withdrawn from warehouse, on or after 12:01 a.m. Eastern on October 30, under heading 9903.03.14. The proclamation's Annex I names 100 additions and 22 removals.

Most coverage calls these changes technical. The annex says otherwise. By our count, 43 of the 100 additions are Chapter 57 carpets and floor coverings, and 13 are cocoa powder lines. Every one of those 13 lines is sweetened cocoa powder, so think drink mix, not plain baking cocoa.

  • Beauty and home care: shampoos (3305.10.00), toilet soap in bars (3401.11.50), retail surface-active preparations (3402.50.51)
  • Home: carpets and rugs, vinyl flooring, wood flooring panels, window air conditioners, chest freezers
  • Outdoor and hobby: canoes, archery equipment (9506.99.05)
  • Trade goods: paints, lubricants, labels, some power tools and valves

What came off the list

The 22 removals favor packaging buyers: corrugated cartons (4819.10.00), paper sacks, some plastic boxes and bags, molded pulp and thin plywood, plus some filling, packing and refrigeration machinery. Read the codes closely, because the line runs inside headings. Corrugated cartons came off, but paper sacks with a base of 40 cm or more (4819.30.00) and wooden packing cases (4415.10.30) went on.

Three rules that catch sellers out

USMCA does not help. The White House fact sheet says the tariffs apply whether or not a good qualifies under USMCA, and on top of Section 232 duties. Per Zonos, a USMCA claim still lowers the ordinary duty and can keep goods out of the 10% Section 301 forced-labor tariff, so keep filing it.

Origin decides, not the shipping route. Zonos reports that a Canadian-origin good routed through a third country stays covered, while goods merely shipped from Canada generally are not, though CBP has not addressed transshipment for this tariff.

Entry date decides, not the order date. BDO says the list that applies depends on the entry or warehouse withdrawal date, and one trade law summary found no in-transit exemption in the proclamation.

The list was already wide

We counted more than 1,200 eight-digit lines on CBP's updated list. Besides the new additions, it already included lip, eye and nail makeup (3304.10, 3304.20, 3304.30), toys (9503.00.00) and many furniture lines. It did not show 3304.99, the usual home of other beauty and skin care, or 2106, which covers many supplements. Your code decides, so check it rather than the category name.

So what: the math on a $14.99 shampoo

Illustrative numbers. A Canadian-made shampoo sells for $14.99 on Amazon, with a $2.25 referral fee, $3.50 in FBA fees and a $4.00 customs value. Before ads, that leaves $5.24 per unit, a 35% break-even ACoS. Add 50% of the customs value, or $2.00, and $3.24 is left, so break-even ACoS falls to 21.6%. This example ignores ordinary duty and freight.

A campaign running at 28% ACoS was profitable on Thursday and loses money on every new shipment. Holding the same dollar margin needs about $2.35 more on price, since Amazon takes 15% of the increase, which lifts the shelf price to about $17.34 just as holiday traffic arrives.

The cost lands on new entries, not stock that cleared before October 30. That gap is your repricing window: units already in FBA carry the old cost, and each new inbound carries the new one.

What sellers should do this week

Work through these before your next Canadian entry.

  • Ops lead: export every SKU made in Canada, with its 8-digit HTS code, and match it to CBP's list. Metric: every SKU marked covered, not covered or needs a ruling.
  • Customs broker: confirm classification and origin in writing for each covered SKU, and file the correct Chapter 99 heading. Metric: no entries rejected or corrected.
  • Finance lead: add the duty to landed cost per unit in your Amazon profit calculator and FBA fee model. Metric: margin per unit after duty.
  • PPC manager: reset target ACoS on covered ASINs before new stock arrives. Metric: ad spend stays under the new break-even ACoS.
  • Owner: decide price against your pricing strategy using days of cover at the old cost. Metric: units left at the old cost when the price moves.
  • Finance lead: keep entry records for all Section 338 duty paid, and ask counsel about drawback on goods you re-export. Metric: duty paid is traceable by entry.

Before your next Canadian entry

  • Match 8-digit HTS codes to CBP's list
  • Get origin confirmed in writing
  • Add duty to landed cost per unit
  • Reset target ACoS on covered ASINs
  • Decide price using old-cost stock
  • Keep entry records for duty paid

The lawsuit, and what could change

Baker McKenzie reports the first legal challenge, Gellert Global Group Corp. v. Trump, at the US Court of International Trade. The importer asks the court to declare the duties unlawful, stop collection, order refunds with interest and certify a class of affected importers. Those are requests, not rulings, so do not book a refund.

The list can also move again. It changed on September 15 and on October 30, and BDO notes that the President can amend these proclamations without notice and comment.

When this does not apply

If your goods are not of Canadian origin, these 50% duties do not apply, even if a Canadian warehouse ships them. If a US distributor acts as importer of record, the duty hits you through its price, so ask for its position in writing. Our sources do not settle how postal and low value parcels are treated, so check with a broker. This is reporting, not legal or customs advice.

Why this belongs in your ad plan

A tariff is a margin change, and margin sets your bid. PPC Spider sets target ACoS from product margin after fees, so a cost shift like this should reach bids through Amazon PPC management before the stock lands. Follow changes on our Amazon policy updates channel, or use a free Amazon audit to see which ASINs can absorb the cost.

Sources

Get the next change before your competitors do

We send the marketplace changes that matter each week, with what to do next.

By subscribing you agree to our privacy policy. Unsubscribe any time.
Want this done for your account?

We run these playbooks on client accounts every day. Start with a free audit.

Get a free audit