On October 23, 2026, the United States announced changes to its 50 per cent Section 338 tariff list on Canadian goods, taking effect at 12:01 a.m. ET on October 30, 2026. The changes remove the 50 per cent tariff from 22 product lines while adding it to 100 new product lines. The Ontario Federation of Agriculture (OFA) welcomes the removal of U.S. tariffs on agricultural egg, fruit, and produce grading equipment, food and beverage processing and packaging machinery, and key produce packaging materials such as plastic harvest crates, corrugated boxes, polyethylene bags, and molded pulp egg cartons and berry trays.

However, the U.S. is adding new 50 per cent tariffs on bulk multi-wallpaper sacks used for seed, feed, flour, and dairy powder, as well as wooden harvest boxes, sweetened cocoa powder, unprinted barcode labels, orchard grafting putty, chest freezers, and steel valves. In addition, Ontario’s cut flower and floriculture growers, honey producers, and dairy, cheese, beverage alcohol exporters remain heavily impacted by ongoing U.S. tariffs and import bans enacted in August and September 2026.

On the Canadian import side, the federal government has confirmed that tractors, combines, and agricultural machinery repair parts (even when made of steel) qualify for zero per cent tariff remission through June 30, 2027, when imported for farm production or food processing and packaging. However, farm and livestock trailers remain subject to a 25 per cent Canadian counter-tariff.

OFA continues to call on both governments to return to the negotiating table to secure a fair, durable trade agreement, and is advocating for immediate remission relief on agricultural trailers and targeted support for affected Ontario producers.

The full list of affected tariff lines is available in Annex I, with the corresponding amendments to the U.S. tariff schedule outlined in Annex II.

Source: Ontario Federation of Agriculture October 30, 2026 newsletter