BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
Section 338 of the Tariff Act of 1930 grants the President authority to impose duties on imports from a foreign country to counteract any burden or disadvantage caused by that country’s discrimination or unfair imposition on U.S. commerce.
Canada, through discriminatory and unequal practices, imposes a burden on U.S. commerce that does not apply to other countries, particularly affecting U.S. alcoholic beverages while sparing those from other nations.
Canadian provinces and territories regulate the distribution and sale of alcoholic beverages, including distilled spirits, wine, and beer. Although they control the wholesale market, retail systems often blend public and private operations.
Beginning in March 2025, all Canadian provinces and territories stopped purchasing, distributing, or retailing U.S. alcoholic beverages. For instance, the Liquor Control Board of Ontario (LCBO) on March 4, 2025, ended purchases of U.S. products, canceled existing orders where possible, and removed U.S. products from their catalogues and retail sites. Similarly, Quebec instructed the Société des Alcools du Québec to pull U.S. products from shelves and halt supply to various outlets. Only Alberta and Saskatchewan lifted these bans in June 2025.
The U.S., its businesses, and workers are adversely affected by these discriminatory practices, as seen in the dramatic fall of U.S. alcoholic beverage exports to Canada. From March 2025 to February 2026, Canadian imports of U.S. alcoholic beverages plummeted by about 81 percent, from approximately $718 million to $137 million, compared to the previous year.
Since March 2025, Canada has not applied similar bans on products from other countries, which has benefited them at the expense of the United States. During the same period, Canadian imports of alcoholic beverages from countries like Chile, Japan, Argentina, and Australia rose significantly, increasing by up to 26 percent. Although total imports into Canada decreased by nearly 12 percent, imports from countries other than the U.S. rose by over $170 million, with the European Union accounting for more than $100 million of this growth.
Therefore, under section 338, I conclude that Canada’s restrictions on U.S. alcoholic beverages are unreasonable and discriminatory, placing U.S. commerce at a disadvantage compared to other countries. This unequal imposition burdens U.S. commerce.
To address this inequity, I find it in the public interest to impose additional ad valorem duties on certain Canadian products. These duties aim to counteract the disadvantage and are consistent with U.S. interests. The unfair denial of export opportunities harms U.S. producers, suppresses domestic manufacturing and agriculture, and undermines American employment. Imposing these duties should enhance U.S. market opportunities and may prompt Canada to lift its unfair restrictions.
Thus, I determine that it is necessary to impose an additional ad valorem duty of 50 percent on specific Canadian products, effective from 12:01 a.m. eastern time on August 19, 2026. This action is intended to offset the unfair disadvantage imposed on U.S. commerce and aligns with the public interest.
Section 338 authorizes the President to levy additional duties, not exceeding 50 percent ad valorem, if it serves the public interest, and to adjust these measures as needed. Additionally, section 604 of the Trade Act of 1974 allows the President to implement these changes in the Harmonized Tariff Schedule of the United States.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and U.S. laws, including section 338, section 301 of title 3, and section 604, proclaim the following:
(1) Specific Canadian products listed in Annex II to this proclamation, imported into the U.S., will face an additional ad valorem duty of 50 percent starting from 12:01 a.m. eastern time on August 19, 2026.
(2) These duties are in addition to any other applicable duties, taxes, fees, or charges, excluding those under section 232 of the Trade Expansion Act of 1962 or related to the World Trade Organization Agreement on Trade in Civil Aircraft.
(3) The Harmonized Tariff Schedule is modified as per Annex II of this proclamation, effective from the specified date, unless expressly changed.
(4) Products subject to these duties and admitted into a U.S. foreign trade zone must be admitted as “privileged foreign status” and will be subject to applicable ad valorem rates.
(5) Heads of executive departments and agencies are authorized to take necessary measures to implement this proclamation, with the possibility of redelegating this authority.
(6) The Commissioner of U.S. Customs and Border Protection, in consultation with relevant officials, is authorized to issue necessary regulations and take measures to administer the duties imposed in this proclamation.
(7) The Commissioner of CBP, with input from relevant officials, will determine if further modifications to the HTSUS are needed and make necessary changes through notice in the Federal Register.
(8) For any rule or regulation made by the Commissioner of CBP, approval from the President or the United States Trade Representative is required. The United States Trade Representative has the delegated approval authority per 19 U.S.C. 1338(h).
(9) Any previous proclamations or Executive Orders inconsistent with this proclamation are superseded. If any part of this proclamation is found invalid, the rest remains unaffected.
IN WITNESS WHEREOF, I have set my hand this twentieth day of July, in the year 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
