Market note

Market note, October 25, 2026:
plywood off the Canadian tariff list, carpets and valves on

One item today, and it touches three trades at once. On October 23 the White House changed the list of Canadian goods that pay the extra 50% tariff: plywood comes off, carpets and some valves go on, from October 30.

By the WorkTime CRM team · Updated October 25, 2026

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50%Extra Section 338 duty on listed Canadian goods: from October 30, 2026 plywood comes off the list, carpets and certain valves go on (White House, October 23, 2026)

White House, October 23: what changes on October 30

Since August 19, 2026 a list of Canadian goods has paid an additional 50% duty under Section 338 of the Tariff Act of 1930, even when the goods qualify under USMCA. Energy, potash, fish, critical minerals and products already under Section 232 tariffs were left out of it.

On October 23 the President signed a proclamation that changes the list. Removed: plywood sheets, some paper products, certain machinery and refrigeration equipment, and certain packing crates and boxes. Added: certain valves, carpets, waste products "and others". The changes take effect October 30, 2026. The fact sheet does not list every product; the exact tariff codes are in the proclamation's annex.

What did not change: Canadian softwood lumber is not on this list. It stays under its own antidumping and countervailing duties (24.75% for most mills since October 19) plus the 10% Section 232 tariff.

Why a small contractor should care: plywood is in almost every framing, subfloor and roof job, and carpet and valves are on every flooring and plumbing estimate. A supplier that stocks Canadian product may change its price after October 30, up or down, and an estimate you send this week will be bought at that price.

What to do this week

  1. 01Ask your supplier two questions: is the plywood, carpet or valve you buy made in Canada, and will their price change after October 30? Get the answer in writing or by text.
  2. 02On estimates not yet signed that carry carpet or Canadian-made valves, re-price those lines with the new quote, or write a short note that material prices are good for a set number of days.
  3. 03If your plywood is Canadian, do not drop your price before the supplier does. Stock bought before October 30 already paid the duty.

Where WorkTime CRM helps with this

When the supplier gives you a new price, change it once in your Pricebook: AI estimates take your own price for a line with the same name and unit, so the next carpet or valve line uses the new number.

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Questions

Is Canadian plywood tariff-free after October 30?

It comes off the 50% Section 338 list. The fact sheet says nothing about other duties on it, so ask your supplier or customs broker what still applies.

Which carpets and valves are covered?

The fact sheet says "carpets" and "certain valves" without codes. The exact list is in the annex of the October 23 proclamation. Ask your supplier whether your product is on it.

Did the lumber duty change too?

Not in this action. Canadian softwood lumber carries its own duties, 24.75% for most mills since October 19, plus the 10% Section 232 tariff.

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