Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages

This proclamation, issued under section 338 of the Tariff Act of 1930, finds that Canada discriminates against U.S. commerce because its provinces and territories banned the purchase, distribution, and retailing of U.S. alcoholic beverages beginning in March 2025 while not restricting products of other countries. To offset that burden, it imposes an additional 50 percent ad valorem duty on certain products of Canada identified in Annex II, effective for goods entered for consumption on or after 12:01 a.m. eastern time on August 19, 2026, excluding articles subject to section 232 duties or the WTO Agreement on Trade in Civil Aircraft. It also requires covered products admitted into U.S. foreign trade zones to be admitted under "privileged foreign status" and authorizes the Commissioner of U.S. Customs and Border Protection, in consultation with the Secretaries of the Treasury and Commerce and the United States Trade Representative, to issue implementing rules and make conforming modifications to the Harmonized Tariff Schedule.

Importers of covered Canadian products to Pay an additional 50 percent ad valorem duty on certain products of Canada identified in Annex II, in addition to all other applicable duties, taxes, fees, exactions, and charges (Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 19, 2026). Parties admitting covered Canadian products into U.S. foreign trade zones to Admit covered products into U.S. foreign trade zones under "privileged foreign status" (except goods eligible for "domestic status"), subjecting them upon entry for consumption to the applicable ad valorem duty rate (On or after the effective date of the proclamation (August 19, 2026)).

No known legal challenges.