BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) grants the President the authority to impose duties on imports from a foreign country to counteract any burden or disadvantage arising from that country’s discriminatory practices or unequal treatment in relation to U.S. commerce.
Canada’s Discriminatory Practices: Canada engages in actions that favor the commerce of certain foreign countries over that of the United States, particularly in the dairy sector. This preferential treatment results in disadvantages and burdens on U.S. commerce. Specifically, Canada provides benefits to other countries’ dairy industries that are denied to the United States, placing U.S. commerce at a disadvantage.
Tariff-Rate Quotas (TRQs): Canada maintains TRQs on all types of cheese under both the United States-Mexico-Canada Agreement (USMCA) and the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA). These TRQs allow for duty-free imports up to certain annual limits (in-quota quantities) and impose customs duties on imports that exceed these limits.
Eligibility Criteria Disparity: To access the TRQs under the USMCA and CETA, Canada has set eligibility criteria. However, these criteria differ between the agreements, disadvantaging U.S. commerce. For instance, under the USMCA, retailers are not eligible to use the TRQ quantities for cheeses of all types, whereas under CETA, they are granted access.
Impact on U.S. Goods: By excluding U.S. retailers from using the USMCA TRQ for cheeses, Canada discriminates against U.S. goods similar to those from the EU under CETA. This unequal treatment hinders U.S. market access in Canada, leading to lost sales and revenues for U.S. dairy producers and exporters. The discriminatory practices negatively affect U.S. businesses, workers, and the broader economy.
Findings and Actions: In accordance with section 338, I find that Canada’s TRQ allocation measures unfairly discriminate against U.S. commerce in favor of the EU. This discrimination places U.S. commerce at a disadvantage and imposes an unreasonable burden. Consequently, it is necessary to impose additional ad valorem duties on certain Canadian products to counteract this discrimination. This action is in the public interest and consistent with the interests of the United States, as it aims to restore fair competition and encourage Canada to eliminate its discriminatory practices.
Implementation of Additional Duties: An additional ad valorem duty of 50 percent will be imposed on specific Canadian products listed in Annex II of this proclamation, effective from 12:01 a.m. eastern time on August 19, 2026. This measure will counterbalance the disadvantages faced by U.S. commerce due to Canada’s unfair practices. This decision aligns with the public interest and aims to support U.S. economic vitality.
Authority to Impose and Amend Duties: Section 338 permits the President to impose additional duties, up to 50 percent ad valorem, to address any discrimination or unequal imposition by a foreign country. These duties can take effect no sooner than 30 days after the President’s proclamation. The President also has the authority to amend or revoke such proclamations if needed to serve the public interest. Furthermore, the President may exclude products if a foreign country continues or escalates discriminatory practices against U.S. commerce.
Harmonized Tariff Schedule Modification: Section 604 of the Trade Act of 1974 authorizes the President to incorporate statutory changes affecting import treatment into the Harmonized Tariff Schedule of the United States (HTSUS), including modifications to duty rates and other import restrictions.
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 II to this proclamation, imported into the United States shall be subject to an additional ad valorem duty of 50 percent, effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 19, 2026.
(2) Except as otherwise provided in this proclamation and in Annex I to this proclamation, the duties imposed in this proclamation are in addition to any other duties, taxes, fees, exactions, and charges applicable to such products. The duties imposed in this proclamation shall not apply to articles subject to duties pursuant to section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), or articles, excluding unmanned aircraft, subject to the World Trade Organization Agreement on Trade in Civil Aircraft.
(3) 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 August 19, 2026, and the modifications shall continue in effect, unless this action is expressly reduced, modified, or terminated.
(4) Any product subject to the duties imposed in this proclamation, except those eligible for admission under “domestic status” as described in 19 CFR 146.43, that is subject to the duties imposed in this proclamation and that is admitted into a United States foreign trade zone on or after the effective date of this proclamation must be admitted as “privileged foreign status” as described in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rate of duty related to the classification under the applicable HTSUS subheading.
(5) 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.
(6) 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 the duties imposed in this proclamation.
(7) 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 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 correction to the annexes to this proclamation.
(8) 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).
(9) Any provision of previous proclamations and Executive Orders that is inconsistent with this proclamation is superseded to the extent of such inconsistency. 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 twentieth day of July, 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.
ANNEX I
ANNEX II
DONALD J. TRUMP
