U.S. Drops 50% Tariffs on Some Canadian Goods: What Changes Oct. 30
The U.S. will stop charging its 50% tariff on some Canadian goods, including seaweed, cardboard boxes and farm packing machinery, on October 30. It is adding other Canadian products to the list at the same time.
- Rules and figures checked October 23, 2026
- By H Paul
- 9 min read
On this page
Here is what was removed, what was added, and why it barely changes what you pay in Canada. We also worked out what Canada’s own counter-tariffs add to a U.S.-made purchase today.
The short answer
Yes, the U.S. is removing its 50% tariff on a short list of Canadian goods, but it is adding other products at the same time, and Canada’s counter-tariffs on U.S. goods are unchanged. The changes take effect October 30, 2026. They help some Canadian exporters. They do not lower the price of U.S.-made goods you buy in Canada.
A White House fact sheet dated October 23 says the President signed a proclamation under Section 338 of the Tariff Act of 1930. It removes plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes. It adds certain valves, carpets, waste products “and others.”
What Senator Collins announced
Maine Senator Susan Collins, a Republican, announced the exemptions on Friday, October 23, before the White House made its own announcement. The Lewiston Sun Journal reported that her office was the first to publicize them. She said she secured them after “repeated conversations” with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
According to Newsweek’s account of her statement, the nine categories are:
- Corrugated paper or paperboard boxes
- Plastic boxes, crates and similar products
- Plastic packing bags and sacks
- Refrigeration and freezing equipment
- Machinery used to clean, sort or grade agricultural products
- Filling, sealing, closing and labelling machinery
- Packing and wrapping machinery
- Certain non-adhesive sheets, films, foils and strips
- Seaweed and algae products for human consumption
Collins said the products are used by Maine’s wild blueberry, potato, apple and seaweed producers. Her office said blueberry growers import specialized harvesting boxes from Canada that fit their processing equipment, and that a U.S. maker of some cardboard farm totes has stopped making them. She said the businesses rely on Canadian products “that are either unavailable from American suppliers or cannot be replaced without incurring significant expense.”
What comes off the list and what goes on
The White House does not give a count in its fact sheet. It names categories, and Canadian news coverage named more examples from the annex. KPMG Law’s Robert Glasgow told CTV News that more items are being added than removed.
| Removed from the 50% tariff | Added to the 50% tariff |
|---|---|
| Plywood sheets | Certain valves |
| Some paper products, including corrugated boxes | Carpets |
| Certain farm and packing machinery | Certain waste products |
| Refrigeration and freezing equipment | Cocoa powder |
| Certain packing crates and plastic boxes | Vinyl flooring |
| Seaweed and algae products | Shampoos |
Rows are not matched pairs. Examples come from the White House fact sheet and CTV News reporting on the annex. Exporters should check exact tariff codes in the proclamation annex.
The rate itself is not changing. Goods that stay on the list still pay 50%, and the fact sheet says the tariff applies “regardless of whether a good originates under” the U.S.-Mexico-Canada Agreement, and on top of any Section 232 tariffs.
Why this is happening now
The timing is political. Collins is running for a sixth Senate term against Democrat Troy Jackson in November’s midterm elections, and the Sun Journal describes the Canada tariffs as deeply unpopular in Maine. Both candidates oppose them. Before the tariffs, two-way trade between Maine and Canada was worth about $6 billion a year, the paper reported.
This is the second carve-out of its kind. A September 8 White House fact sheet removed rock salt and cement from the tariff list, an exemption Collins also claimed credit for.
Trade lawyer Barry Appleton told CTV that overall U.S. tariff policy has not changed, and that Washington “moved some bricks around” rather than lowering the wall. Prime Minister Mark Carney said Canada is still engaging with the U.S. and “could sign it this afternoon if the U.S. were there.”
How the tariff fight got here
- July 20, 2026: The President signs three Section 338 proclamations putting a 50% tariff on Canadian goods ranging from wine to hockey sticks to cement, according to the July White House fact sheet. Energy, potash, fish, critical minerals and goods already under Section 232 tariffs are excluded.
- August 22: The 50% tariffs take effect on what Finance Canada describes as $27.6 billion of Canadian goods.
- August 25: Finance Canada announces matching counter-tariffs on $27.6 billion of U.S. imports and a $7.5 billion support package for workers and businesses.
- September 8: Canada’s counter-tariffs take effect. The same day, the White House announces import bans on certain Canadian alcohol and dairy products, effective September 29.
- October 20: The Parliamentary Budget Officer cuts its 2026 growth forecast to 0.9% from 1.1%, citing trade measures and uncertainty, BNN Bloomberg reported.
- October 23: The new proclamation is signed. It takes effect October 30.
What it means for prices in Canada
The U.S. tariff is collected when Canadian goods enter the U.S. It hurts Canadian exporters and the jobs that depend on them, but it is not a tax on your shopping. The tax that shows up in Canadian prices is Canada’s own counter-tariff, called the United States Surtax Order (2026). Nothing announced on October 23 changes it. The office of Dominic LeBlanc, the minister responsible for Canada-U.S. trade, said the government will assess the new U.S. measures.
The surtax is 15%, 25% or 50% of the value for duty. The schedules in the Canada Gazette include several things households buy:
- 50%: smartphones, video game consoles and cotton T-shirts, among others
- 25%: washing machines, dryers, refrigerators, many freezers and cheese
- 15%: some air conditioners
The detail that matters most is origin, not brand. The CBSA customs notice says the surtax applies only to goods that qualify to be marked as U.S. goods. A phone from a U.S. company that is made elsewhere is not covered. A washer built in a U.S. factory is.
What the surtax adds to a U.S.-made purchase
Here is a hypothetical U.S.-made item with a $500 value for duty, shipped to Canada. We used the CBSA’s own method: surtax first, then 5% GST on the value plus the surtax.
| Surtax rate | Surtax | GST | Total at the border | Extra vs not U.S.-made |
|---|---|---|---|---|
| None (made elsewhere) | $0.00 | $25.00 | $25.00 | $0.00 |
| 15% | $75.00 | $28.75 | $103.75 | $78.75 |
| 25% | $125.00 | $31.25 | $156.25 | $131.25 |
| 50% | $250.00 | $37.50 | $287.50 | $262.50 |
Hypothetical example. Assumes a 0% regular customs duty and GST only; provincial tax, broker fees and shipping are not included. Our method reproduces the CBSA’s own $150 example of $86.25 at 50%.
So at the 50% rate, the extra cost works out to 52.5% of the item’s value once GST is counted. At 25% it is 26.25%. Stores that import in bulk pay the same surtax, and the government’s own analysis says importers are expected to pass “some or all” of the cost on to businesses or consumers.
Two more rules catch shoppers out. The CBSA says the surtax applies to courier and postal shipments, even those under the de minimis thresholds. And if you bring goods back from a U.S. trip, the surtax applies to anything above your personal exemption.
Before you buy something made in the U.S.
A few checks can save you hundreds on a big purchase.
- Check the country of originLook at the box, the spec sheet or the product listing. Brand headquarters do not count.
- Compare a model made elsewhereFor a washer or fridge, a similar model from a non-U.S. plant avoids a 25% surtax.
- Ask what an online price includesOn orders from U.S. sites, find out whether duties and the surtax are collected at checkout or on delivery.
- Do not wait for a rollbackNo change to Canada’s surtax has been announced. Buy when you need to, not on a rumour.
What it means for jobs and the economy
The exemptions cover a small slice of trade. Glasgow told CTV the immediate impact will likely be small. The bigger picture is unchanged: the PBO now expects 0.9% real growth in 2026 and 1.5% in 2027, with inflation of 2.8% this year, according to BNN Bloomberg.
If your job is in a sector hit by the tariffs, the federal support package includes $3.5 billion for workers and employers, with extended EI flexibilities and a new Worker Retention and Retraining Program. Businesses can look at the $1.5 billion Regional Tariff Response Initiative and BDC’s tariff programs. If you still buy from U.S. sites, our guide to foreign transaction fees explains when a no-FX card pays off.
What to watch next
- October 30: the U.S. changes take effect for Canadian exporters.
- Ottawa’s response: whether Canada trims its own counter-tariffs in return. Nothing has been announced.
- The midterms: Collins said she will keep seeking more relief, and Carney said a pre-election deal is up to the United States.
- Court challenges: The Canadian Press reported a new lawsuit challenging the Canada tariffs on October 20.
If you are replacing an appliance this fall, check our Ontario appliance rebates guide before you buy, and put the purchase on a card that pays you back. Our cash back card comparison shows which ones earn the most on everyday spending.
Frequently asked questions
Is the U.S. removing tariffs on Canadian goods?
Only on some. A White House proclamation signed October 23, 2026 removes plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes from the 50% Section 338 tariff, effective October 30. It also adds other products, including certain valves, carpets and waste products.
Which Canadian products are exempt from the 50% U.S. tariff?
Senator Susan Collins listed nine categories: corrugated paper or paperboard boxes, plastic boxes and crates, plastic packing bags and sacks, refrigeration and freezing equipment, machinery that cleans, sorts or grades farm products, filling, sealing and labelling machinery, packing and wrapping machinery, certain non-adhesive sheets, films, foils and strips, and seaweed and algae for human consumption. The White House also lists plywood sheets.
When do the new U.S. tariff exemptions take effect?
October 30, 2026, according to the White House fact sheet. The 50% rate stays in place on every Canadian product that remains on the list.
Will prices in Canada go down because of the exemptions?
Not directly. The U.S. tariff is paid on Canadian goods entering the U.S. The tax that raises prices in Canada is Canada’s own surtax of 15%, 25% or 50% on many U.S.-made goods, in force since September 8, 2026. As of October 23, Ottawa had not announced any change to it.
Does Canada’s counter-tariff apply to online orders from the U.S.?
Yes, if the item is a U.S.-origin good on Canada’s list. The Canada Border Services Agency says the surtax applies even to shipments under the de minimis thresholds, and GST is then charged on the value including the surtax.
Does the surtax apply to my iPhone or game console?
Only if it is a U.S.-origin good. Smartphones and video game consoles are on Canada’s 50% list, but the surtax applies to goods that qualify to be marked as made in the U.S., not to U.S. brands made elsewhere. Check the country of origin on the box or listing.
- Sources, checked October 23, 2026: The White House: fact sheet on further modifying Canadian products under Section 338 (October 23, 2026); The White House: fact sheet responding to Canada’s retaliation (September 8, 2026); The White House: fact sheet imposing additional tariffs on Canada (July 20, 2026); Department of Finance Canada: countermeasures and support announcement (August 25, 2026); Canada Border Services Agency: Customs Notice 26-23, United States Surtax Order (2026); Canada Gazette Part II: SOR/2026-186, United States Surtax Order (2026); Lewiston Sun Journal, October 23, 2026; Newsweek, October 23, 2026; The Canadian Press via 980 CJME, October 23, 2026; CTV News via CP24, October 23, 2026; BNN Bloomberg on the PBO outlook, October 20, 2026.
- Method: Product changes and dates come from White House fact sheets. Collins’s list of nine categories and her quotes come from news reports of her statement, because her release was not available to us. Surtax rates for household goods come from the tariff item numbers in the Gazette schedules (for example 8517.13.00 smartphones and 9504.50.00 video game consoles at 50%, 8450.11 washers and 8451.21.00 dryers at 25%). The worked example follows the CBSA’s formula: surtax = value for duty x rate, GST = 5% of value plus surtax. Calculated by script and checked against the CBSA’s published example.
Important: This guide is general information, not financial, tax or legal advice. Tariff lists and rates can change quickly; importers should confirm exact tariff codes with the official proclamation, the CBSA or a licensed customs broker. Gizly is not paid by any company named here, and this page has no affiliate links. See our affiliate disclosure.
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