Document: Presidential Proclamation dated October
23, 2026.
1.
Background: The US imposed additional ad valorem duties of 50% on certain Canadian
products under Section 338 of the Tariff Act of 1930, alleging that Canada's
motor vehicle tariff scheme discriminated against US commerce.
2.
Canada's
Commitment: The
additional duties were temporarily suspended for three days in August 2026
after Canada committed to addressing the alleged discrimination. The suspension
lapsed on August 22, 2026, after the US stated that Canada had failed to honour
its commitment.
3.
Modification
of Tariff Coverage:
The new Proclamation revises the scope of Canadian products subject to the
additional 50% duty:
o Annex I, Part A: Specified Canadian products will no
longer attract the additional 50% duty.
o Annex I, Part B: Specified Canadian products will continue
to attract the additional 50% duty.
4.
Effective
Date: The
revised tariff treatment will apply to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 30, 2026.
5.
Additional
Section 232 Duties:
The duties under this Proclamation will apply in addition to duties imposed under Section 232 of the
Trade Expansion Act of 1962.
6.
Amendment
of US Tariff Schedule:
The Harmonized Tariff Schedule of the United States (HTSUS) will be amended to
implement the revised tariff treatment from October 30, 2026. The changes will
remain effective unless subsequently suspended, revoked, amended or terminated.
7.
Implementation
Authority: US
Customs and Border Protection (CBP), in consultation with the relevant
departments and agencies, is authorised to issue rules, instructions and
guidance and make necessary technical modifications to the HTSUS.
·
The
additional 50% US duty on
Canadian products is being modified by product category, rather
than withdrawn entirely.
·
Products
listed in Annex I, Part A
will be exempt from this additional duty, while products in Annex I, Part B will
remain subject to it.
·
Applicable
Section 232 duties will continue to be charged separately, in addition to the
duties covered by this Proclamation.
·
The
revised treatment takes effect on October
30, 2026.
Important
note: The
supplied document refers to Annexes I and II but does not reproduce their
contents. Therefore, the specific products and HTSUS tariff classifications
exempted from or retained under the additional 50% duty cannot be identified
from the supplied text alone.
[ABS
News Service/24.10.2026]
FURTHER 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
October
23, 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. In Proclamation 11065 of September 8, 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), I modified the duties imposed under Proclamation 11048 after
receiving certain information, opinions, and recommendations from senior
executive branch officials to continue offsetting the burden or disadvantage on
U.S. commerce and better serve the public interest.
6. I have received certain
additional 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, as amended, 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, as amended, 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, as amended, 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, as amended, is required by
the public interests and is consistent with the interests of the United States.
7. 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, as amended.
8. 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.
9. 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.
10. 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 no longer be
subject to the additional ad valorem duty of 50 percent imposed pursuant
to Proclamation 11048, as amended. In
addition, certain products of Canada, as set forth in Annex I, Part B 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, as amended. The
duties imposed pursuant to Proclamation 11048, as amended, and 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 October 30, 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 October 30, 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
the Commissioner of CBP 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 twenty-third day of
October, 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