KEY POINTS
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An October proclamation added 50% Section 338 tariffs to about 100 products imported from Canada.
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The additions cover select flooring, wood, fixtures and finishing materials, while a handful of plywood goods were removed.
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The duties stack on top of existing Section 232 tariffs and avoid exemptions from USMCA.
The United States widened the list of Canadian products subject to Section 338 tariffs, with the changes taking effect October 30. The administration initially imposed the duties in July 2026 to offset what it calls Canadian discrimination against the U.S. motor vehicle industry.
For the construction industry, the changes could add price pressure on finishes, fixtures, and mechanical components, as most of the added items go into building interiors rather than the shell.
What Was Added and Removed
The proclamation removes 22 products from the 50% duty, while adding around 100 goods. Flooring materials, including vinyl flooring and dozens of carpet and textile floor goods, now face additional 50% tariffs.
So do certain types of wood and panels, fixtures such as window or wall air conditioners and iron or steel taps and valves, and finishing materials such as caulk and acrylic and vinyl paints.
The removals are narrower for construction, with the duty on several plywood goods the main withdrawal. The proclamation also removes certain refrigeration equipment and industrial machinery, along with packaging items such as corrugated boxes and paper bags.
The new tariffs apply on top of existing duties and escape the mechanism that has protected much of cross-border trade from tariffs. The White House fact sheet states that the tariffs "apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA), and they apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962.”
What it Means for Construction
Projects with heavy interior scopes, such as multifamily, hospitality, healthcare, and offices, could feel the largest effect, though the impact will depend on how much of each product U.S. buyers source from Canada.
Firms focused on interior-heavy sectors should consider including escalation clauses and finding alternative suppliers to keep cost increases from eating into profit margins.
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