·
8
September 2026:
President Donald Trump issued a proclamation modifying the scope of the 50% additional ad valorem duties
imposed on certain Canadian products under Proclamation 11046 of 20 July 2026.
·
Background:
o Proclamation 11046 found that Canada was
discriminating against U.S.
alcoholic beverages by banning or restricting their purchase, distribution
or retailing while not applying similar restrictions to products from other
countries.
o The U.S. determined that such treatment
placed U.S. commerce at a disadvantage and constituted an unreasonable and unequal imposition
under Section 338 of the
Tariff Act of 1930.
o Accordingly, additional duties of up to 50% ad valorem were
imposed effective 19
August 2026.
·
Temporary
suspension and resumption:
o Under Proclamation 11056 of 18 August 2026, the duties
were temporarily suspended for three days after Canada indicated that it would
remove the discriminatory measures.
o Canada allegedly reneged on its commitment on 21 August
2026 and ceased good-faith negotiations.
o Consequently, the suspension expired at 12:01 a.m. ET on 22 August 2026,
and the 50% additional duties under Proclamation 11046 became effective.
·
The
President has now determined that modifying
the product coverage of the 50% Section 338 duties would continue
to offset the burden on U.S. commerce while better serving the public interest.
·
From
15 September 2026:
o Products listed in Annex I, Part A will continue to attract the additional 50%
ad valorem duty.
o Products listed in Annex I, Part B will no longer attract the additional 50%
duty.
o The modified duties will apply in addition to Section 232 tariffs.
·
The
changes apply to Canadian goods entered
for consumption, or withdrawn from warehouse for consumption, on or after 12:01
a.m. ET, 15 September 2026.
·
Section
338 of the Tariff Act of 1930 (19 U.S.C. §1338) authorizes the President to:
o Impose additional duties of up to 50% ad valorem to offset
discriminatory or unequal treatment of U.S. commerce;
o Suspend, revoke, supplement or amend
Section 338 proclamations; and
o Exclude foreign products from U.S.
importation where
the foreign country maintains or increases discriminatory practices and
exclusion is considered in the public interest.
·
Section
604 of the Trade Act of 1974 authorizes the President to incorporate
such changes into the Harmonized
Tariff Schedule of the United States (HTSUS).
·
The U.S. Customs and Border Protection (CBP)
Commissioner, in consultation with the Treasury, Commerce and
USTR, is authorized to issue the necessary rules, regulations, guidance and instructions
to implement the proclamation.
·
CBP
may also make necessary technical
or ministerial modifications to the HTSUS through the Federal Register.
·
Previous
proclamations and Executive Orders inconsistent with this proclamation are superseded to the extent of the
inconsistency.
The 8
September proclamation does not withdraw the 50% Section 338 tariff on Canadian
goods; it changes its product coverage. From 15 September 2026, specified Canadian
products will remain subject to the 50% additional duty, while others will be
removed from its scope. The Section 338 duties continue to operate on top of applicable Section 232 tariffs,
giving the U.S. administration a further instrument to respond to Canada's
trade measures.
[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
ALCOHOLIC BEVERAGES
By the
President of the United States of America
A Proclamation
1. In
Proclamation 11046 of July 20, 2026 (Imposing Additional Duties To Offset
Canadian Discrimination Against the Commerce of the United States With Respect
to Alcoholic Beverages), I found as a fact that Canada is discriminating in
fact against the commerce of the United States by banning the purchase,
distribution, or retailing of U.S. alcoholic beverages while not banning or
similarly restricting such products from other countries; 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. alcoholic beverages, 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 11046 after Canada expressed a
commitment to remove the discrimination or unreasonable and unequal imposition
at issue in Proclamation 11046.
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 11046.
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 11046 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 11046 and the effect of the additional ad valorem duties
imposed in Proclamation 11046, 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 11046 offset the burden or disadvantage on U.S.
commerce, modifying the scope of products subject to the additional ad
valorem duties imposed in Proclamation 11046 would still offset the burden
or disadvantage on U.S. commerce while better serving 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
11046 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 11046.
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 11046. 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 11046. The duties imposed
pursuant to Proclamation 11046, 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