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

This proclamation, issued under section 338 of the Tariff Act of 1930, finds that Canada discriminates against U.S. commerce through its motor vehicle tariff scheme, including a 25 percent tariff and tariff-rate quotas applied only to U.S. vehicles. To offset that burden, it imposes an additional 50 percent ad valorem duty on certain products of Canada identified in Annex II, effective 12:01 a.m. eastern time on August 19, 2026, excluding articles subject to section 232 duties and articles (other than unmanned aircraft) covered by the WTO Agreement on Trade in Civil Aircraft. Covered products admitted into a U.S. foreign trade zone must be admitted under "privileged foreign status", and 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, is authorized to issue implementing rules and modify 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to all other applicable duties, taxes, fees, exactions, and charges (Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 19, 2026). Importers and foreign trade zone users admitting covered Canadian products to Admit covered products (except those eligible for domestic status under 19 CFR 146.43) into U.S. foreign trade zones only under privileged foreign status as described in 19 CFR 146.41, subjecting them upon entry for consumption to the applicable ad valorem duty rate (For admissions on or after the effective date of the proclamation (August 19, 2026)).

No known legal challenges.