·
8
September 2026:
President Donald Trump issued a proclamation modifying the scope of the 50% additional ad valorem duties
imposed on certain Canadian motor vehicles and auto parts under Proclamation 11048 of 20 July 2026.
·
Basis
for the original action:
o The U.S. determined that Canada's motor vehicle tariff scheme
discriminated against U.S. commerce.
o The discrimination was considered to place
U.S. auto and auto-parts exports at a disadvantage compared with those of other
countries.
o The U.S. therefore imposed additional
duties under Section 338
of the Tariff Act of 1930, effective 19 August 2026.
·
Three-day
suspension:
o Proclamation 11056 of 18 August 2026
temporarily suspended the duties for three days after Canada committed to
removing the discriminatory treatment.
o The U.S. states that Canada reneged on the commitment on 21 August
2026 and ceased negotiating in good faith.
o The suspension consequently expired at 12:01 a.m. ET on 22 August 2026,
bringing the 50% additional duties into effect.
·
Following
a review by senior executive branch officials, President Trump determined that changing the products covered by the 50%
duty would continue to offset the disadvantage to U.S. commerce
while better serving the public interest.
·
From 15 September 2026:
o Products listed in Annex I, Part A will remain subject to the additional 50% ad
valorem duty.
o Products listed in Annex I, Part B will be removed from the additional 50% duty.
o The modified Section 338 duties will
continue to apply in
addition to Section 232 tariffs.
·
The
changes apply to goods entered
for consumption, or withdrawn from warehouse for consumption, on or after 12:01
a.m. ET on 15 September 2026.
·
Section
338 of the Tariff Act of 1930 (19 U.S.C. §1338) allows the President to impose additional
duties of up to 50% ad
valorem where a foreign country discriminates against U.S.
commerce or applies unreasonable or unequal restrictions.
·
The
provision also permits the President to suspend,
revoke, supplement or amend Section 338 proclamations when
considered necessary in the public interest.
·
Section
338 further permits exclusion
of foreign products from U.S. imports where discriminatory
practices are maintained or increased.
·
Section
604 of the Trade Act of 1974 provides authority to incorporate the
changes into the Harmonized
Tariff Schedule of the United States (HTSUS).
·
The U.S. Customs and Border Protection (CBP)
Commissioner, in consultation with Treasury, Commerce and the
U.S. Trade Representative, is authorized to issue the necessary rules, regulations, guidance and
instructions.
·
CBP
may make additional technical or ministerial modifications to the HTSUS through Federal Register notice.
·
Any
inconsistent provisions of earlier proclamations or Executive Orders are superseded to the extent of the
inconsistency.
The
proclamation maintains the 50% Section 338 tariff framework against Canada but
revises which motor vehicle and auto-parts products are covered. The revised product coverage takes effect
15 September 2026,
and the duties remain additional
to Section 232 tariffs. The action is justified by the U.S.
administration as a response to Canada's allegedly discriminatory motor-vehicle
tariff regime.
[ABS
News Service/09.09.2026]
MODIFYING
THE SCOPE OF PRODUCTS OF CANADA SUBJECT TO THE ADDITIONAL DUTIES IMPOSED TO
OFFSET CANADIAN DISCRIMINATION AGAINST THE COMMERCE OF THE UNITED STATES WITH
RESPECT TO MOTOR VEHICLES
Proclamations
September
8, 2026
BY
THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
1.
In Proclamation 11048 of July 20, 2026 (Imposing Additional Duties To Offset
Canadian Discrimination Against the Commerce of the United States With Respect
to Motor Vehicles), I found as a fact that Canada is discriminating in fact
against the commerce of the United States through Canada’s motor vehicle tariff
scheme; that this discrimination places the commerce of the United States at a
disadvantage compared to the commerce of other countries; and that Canada’s
imposition is unreasonable, is not equally enforced upon the like articles of
every foreign country, and places a burden on the commerce of the United
States. To offset the burden or disadvantage on U.S. commerce from Canada’s
discrimination or unreasonable and unequal imposition on U.S. auto and auto
parts exports, I imposed under section 338 of the Tariff Act of 1930 (19 U.S.C.
1338) (section 338) additional ad valorem duties, effective August 19, 2026, on
certain products of Canada.
2.
In Proclamation 11056 of August 18, 2026 (Temporary Suspension of Additional
Duties To Offset Canadian Discrimination Against the Commerce of the United
States With Respect to Alcoholic Beverages, Dairy, and Motor Vehicles), I temporarily
suspended for 3 days the effective date of the additional ad valorem duties
imposed under Proclamation 11048 after Canada expressed a commitment to remove
the discrimination or unreasonable and unequal imposition at issue in
Proclamation 11048.
3.
On August 21, 2026, Canada reneged on its commitment, ceased negotiating in
good faith, and did not remove the discrimination or unreasonable and unequal
imposition at issue in Proclamation 11048.
4.
Accordingly, at 12:01 a.m. eastern time on August 22, 2026, the 3-day
suspension imposed by Proclamation 11056 lapsed, and the additional ad valorem
duties imposed under Proclamation 11048 became effective.
5.
I have received certain information, opinions, and recommendations from senior
executive branch officials on the status of the circumstances involved in
Proclamation 11048 and the effect of the additional ad valorem duties imposed in
Proclamation 11048, including how effectively those duties are offsetting the
burden or disadvantage on U.S. commerce. According to senior executive branch
officials, although the additional ad valorem duties imposed in Proclamation
11048 offset the burden or disadvantage on U.S. commerce, modifying the scope
of products subject to the additional ad valorem duties imposed in Proclamation
11048 would still offset the burden or disadvantage on U.S. commerce and better
serve the public interest. In my senior executive branch officials’ opinion,
modifying the scope of products subject to the additional ad valorem duties
imposed in Proclamation 11048 is required by the public interests and is
consistent with the interests of the United States.
6.
After considering the information, opinions, and recommendations that have been
provided to me by senior executive branch officials, among other relevant
information and considerations, I determine that the public interests require modifying
the scope of products subject to the additional ad valorem duties imposed in
Proclamation 11048.
7.
In my judgment, the modification in this proclamation will offset the burden or
disadvantage on U.S. commerce, is consistent with the public interests and the
interests of the United States, is required by the public interests, and will
better serve the public interest.
8.
Section 338 authorizes the President, if he determines it will serve the public
interest, to offset any burden or disadvantage placed on the commerce of the
United States by an unequal imposition or discrimination by a foreign country
by specifying and declaring additional duties not to exceed 50 percent ad valorem
(or its equivalent) and not to take effect earlier than 30 days after the
President’s proclamation finding that a foreign country is imposing an
unreasonable charge, exaction, regulation, or limitation that is not equally
enforced on the like articles of every foreign country, or discriminates in
fact against U.S. commerce in a way that places the commerce of the United
States at a disadvantage compared to the commerce of any foreign country.
Section 338 also authorizes the President to suspend, revoke, supplement, or
amend any proclamation under section 338 whenever the President deems that the
public interests require such action. Further, section 338 authorizes the
President to exclude from importation articles of the foreign country if the
foreign country maintains or increases the discrimination against the commerce
of the United States and the President deems the exclusion to be consistent
with the public interests and the interests of the United States.
9.
Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483) (section
604), authorizes the President to embody in the Harmonized Tariff Schedule of
the United States (HTSUS) the substance of statutes affecting import treatment,
and actions thereunder, including the removal, modification, continuance, or
imposition of any rate of duty or other import restriction.
NOW,
THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by
the authority vested in me by the Constitution and the laws of the United
States, including section 338; section 301 of title 3, United States Code; and
section 604, do hereby proclaim as follows:
(1)
Except as otherwise provided in this proclamation, certain products of Canada,
as set forth in Annex I, Part A to this proclamation, imported into the United
States shall be subject to the additional ad valorem duty of 50 percent imposed
pursuant to Proclamation 11048. In addition, certain products of Canada, as set
forth in Annex I, Part B to this proclamation, imported into the United States
shall no longer be subject to the additional ad valorem duty of 50 percent
imposed pursuant to Proclamation 11048. The duties imposed pursuant to
Proclamation 11048, as modified in this proclamation, shall apply in addition
to duties imposed pursuant to section 232 of the Trade Expansion Act of 1962,
as amended (19 U.S.C. 1862). These changes shall be effective with respect to
goods entered for consumption, or withdrawn from warehouse for consumption, on
or after 12:01 a.m. eastern time on September 15, 2026.
(2)
The HTSUS is modified as provided in Annex II to this proclamation, effective
with respect to goods entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern time on September 15, 2026, and the
modifications shall continue in effect unless this action is expressly
suspended, revoked, supplemented, amended, or terminated.
(3)
The head of each executive department and agency (agency) is authorized to and
shall take all appropriate measures within the agency’s authority to implement
this proclamation. The head of each agency may, consistent with applicable law,
including section 301 of title 3, United States Code, redelegate the authority
to take such appropriate measures within the agency.
(4)
The Commissioner of U.S. Customs and Border Protection (CBP), in consultation
with the Secretary of the Treasury, the Secretary of Commerce, and the United
States Trade Representative, is authorized to issue such rules, regulations,
guidance, instructions, or determinations as may be necessary to implement this
proclamation and is authorized to take any necessary measures to administer
this proclamation.
(5)
The Commissioner of CBP, in consultation with the Secretary of the Treasury,
the Secretary of Commerce, the United States Trade Representative, the Chairman
of the United States International Trade Commission, and any other senior
executive branch official he deems appropriate, shall determine whether any
additional modifications to the HTSUS are necessary to effectuate this
proclamation and shall make such modifications to the HTSUS through notice in
the Federal Register, including any technical or ministerial correction to the
annexes to this proclamation.
(6)
For any rule or regulation the Commissioner of CBP makes to implement this
proclamation, the Commissioner of CBP shall, to the extent required by law,
obtain the approval of the President or the United States Trade Representative.
The United States Trade Representative is delegated the President’s approval
authority in 19 U.S.C. 1338(h).
(7)
Any provision of previous proclamations and Executive Orders that is
inconsistent with this proclamation is superseded to the extent of such
inconsistency.
(8)
If any provision of this proclamation or the application of any provision to
any individual or circumstance is held to be invalid, the remainder of this
proclamation and the application of its provisions to any other individuals or
circumstances shall not be affected.
IN
WITNESS WHEREOF, I have hereunto set my hand this eighth day of September, in
the year of our Lord two thousand twenty-six, and of the Independence of the
United States of America the two hundred and fifty-first.
DONALD J. TRUMP