Ambassador Greer Issues Statement on
President Trump’s Response to Canada’s Continued Retaliation Against the United
States
1.
Action
on Canada: On September 8, 2026, U.S.
Trade Representative Ambassador Jamieson
Greer announced further trade measures against Canada following
continued Canadian retaliation and alleged discriminatory treatment of U.S.
exports.
2.
Section
338 Invoked:
President Trump exercised authority under Section 338 of the U.S. Tariff Act of 1930
to:
o Ban certain Canadian products from
entering the U.S.; and
o Modify existing Section 338 tariff
measures.
3.
Targeted
Canadian Sectors: The
new import bans primarily cover:
o Motor vehicles
o Dairy products
o Alcoholic beverages
4.
Reason
Cited by U.S.: The
measures are intended to counter Canada's alleged discriminatory treatment of crucial U.S.
exports, including vehicles, dairy and alcoholic beverages.
5.
Trade
Negotiations Breakdown: According
to Ambassador Greer, U.S. and Canadian negotiators had reached a near-final trade agreement
after weeks of negotiations, but Canada allegedly withdrew and chose
retaliation instead.
6.
Reciprocity
Objective: The
Trump administration says the measures are designed to restore reciprocity and protect U.S.
workers and exporters.
7.
$50
Billion GSA Action:
President Trump has also directed the USTR
and General Services Administration (GSA) to remove
approximately $50 billion
worth of Canadian-origin products from the GSA's Multiple Award
Schedules.
8.
Modification
of Earlier Measures: The
September action also refines
the scope of the July 20, 2026 Section 338 measures, targeting
strategic Canadian sectors while removing certain non-sensitive Canadian goods.
9.
Presidential
Powers Under Section 338:
Section 338 of the Tariff
Act of 1930 (19 U.S.C. §1338) permits the President to impose
duties of up to 50%
on imports from countries whose discriminatory or unequal treatment
disadvantages U.S. commerce.
10. Import Bans Also Authorized: Section 338 allows the President to exclude products from U.S. importation
where a foreign country maintains or increases discriminatory practices against
U.S. commerce.
11. July 20 Measures: Trump had previously taken three separate Section 338 actions on
July 20, 2026, covering Canadian motor vehicles, alcoholic beverages and
dairy products.
12. Latest Policy Position: The September 8 measures represent an escalation of the U.S.–Canada trade
dispute, moving beyond tariffs to targeted import bans and government procurement
restrictions.
·
Canadian
exports affected:
Vehicles, dairy and alcohol.
·
U.S.
government procurement affected:
Up to $50 billion
of Canadian-origin products.
·
Legal
instrument: Section 338, Tariff Act of 1930.
·
Policy
objective: Reciprocity, retaliation against
discriminatory measures and protection of U.S. commerce.
On 8 September, 2026, Ambassador
Jamieson Greer issued a statement after President Trump exercised his authority
under Section 338 of the Tariff Act of 1930 to ban certain Canadian products
from entering the U.S. market and modify the scope of the July 20 actions to
effectively offset the burden or disadvantage to U.S. commerce by Canada’s
discriminatory measures.
“After weeks of good faith and
intensive efforts between U.S. and Canadian negotiators, Canada walked away
from a near-final trade deal that offered better treatment than any other
trading partner, and instead Canada chose to embark on senseless retaliation
against the United States,” said Ambassador Greer. “Today’s action,
combining targeted import bans as authorized by Section 338 and a calibration
of the underlying Section 338 tariffs, is a natural consequence of Canada’s
continued discriminatory treatment of crucial American exports, ranging from
alcoholic beverages to dairy products to motor vehicles. President Trump will
continue to leverage the tools at his disposal to defend the interests of
American workers and exporters, and restore reciprocity in our bilateral trade
relationships.”
Additionally, the President has
directed USTR (Office of the United States Trade Representative) and GSA
(General Services Administration) to remove $50 billion dollars’ worth of
Canadian-origin products from GSA’s Multiple Award Schedules.
To view the lists of Canadian products
banned under the Section 338 actions, click here (motor vehicles), here (dairy), and here (alcohol).
Background:
Section 338 of the Tariff Act of 1930
(19 U.S.C. 1338) empowers the President to, among other things, impose duties
of up to 50 percent on imports of a foreign country to offset the burden or
disadvantage from a foreign country’s unequal imposition on or discrimination
against the commerce of the United States. On July 20, 2026, finding that the
public interest will be served by his actions, President Trump took three
separate Section 338 actions to level the playing field for important American
exports to Canada—motor vehicles, alcoholic beverages, and dairy. Section 338
further empowers the President to exclude products from importation into the
United States if a foreign country maintains or increases its discriminatory
practices against U.S. commerce.
Based on Canada’s continued retaliation
and discrimination against U.S. commerce, President Trump has determined that
it is necessary and appropriate to ban certain Canadian products from entering
the U.S. market and refined the scope of the July 20 actions to target
strategic Canadian sectors while removing certain non-sensitive Canadian goods
from the scope of the actions.