Potential Section 338 Tariffs Apply to Limited Array of Forest Products

研报英文原文证据摘录

Potential Section 338 Tariffs Apply to Limited Array of Forest Products

TD SECURITIES INC. - CANADA QUICK TAKE: INDUSTRY UPDATE

July 21, 2026

■Paper & Forest Products Potential Section 338 Tariffs Apply to Limited

Array of Forest Products

Sean Steuart, CFA^ THE TD COWEN INSIGHT

416 308 3399

For our coverage set, we believe that potential Section 338 tariffs of 50% are limited to paper

sean.steuart@tdsecurities.com

packaging, tissue, and some specialty engineered wood products. Major Canadian export

Kasia Trzaski Kopytek, CFA, CPA, CA^ products – softwood lumber (already assessed Section 232 tariffs + CVDs/ADDs), oriented

416 983 4058 strand board (OSB), and paper-grade market pulp – are excluded. Small-cap KPT has relatively

kasia.trzaski@tdsecurities.com

high potential tariff exposure.

Event

Last night, the Trump administration announced plans to impose 50% tariffs on certain U.S.

imports from Canada pursuant to Section 338 of the Tariff Act of 1930. The tariffs could come

into effect in 30 days and exclude products already subject to Section 232 tariffs (including

softwood lumber). The proposed 50% rate is the maximum available under the Section 338

statute. See broader context from our colleague at the Washington Research Group (WRG)

HERE.

Impact: SLIGHTLY NEGATIVE but limited to a few relevant equities

■With major Canadian forest products seemingly exempted from the annex list provided by

the U.S. government, we believe that only a few equities in our coverage set are exposed

to potential Section 338 tariffs. For companies that we cover, we believe the impact is

limited to paper packaging, tissue products, and specialty engineered wood products

(EWP). The tariff annex appears to exclude softwood lumber, oriented strand board (OSB)

and paper grade market pulp.