in effect
This is a presidential proclamation (Proclamation 11047, signed July 20, 2026) imposing new import tariffs on certain Canadian goods under Section 338 of the Tariff Act of 1930. It responds to a finding that Canada treats American cheese exporters less favorably than European Union cheese exporters under its trade quota rules, and directs U.S. Customs and Border Protection to collect the new duties starting August 19, 2026.
A new 50 percent additional tariff applies to specific Canadian products listed in Annex II of the proclamation, effective 12:01 a.m. Eastern time on August 19, 2026. The core complaint is that Canada allows European retailers to access duty-free cheese import quotas under the Canada-EU trade agreement (CETA) but bars retailers from accessing the equivalent quota available to U.S. exporters under the U.S.-Mexico-Canada Agreement (USMCA). These new duties stack on top of any existing tariffs, with exceptions for goods already covered by Section 232 national-security tariffs or the WTO civil aircraft agreement. The tariffs remain in effect indefinitely unless the President reduces, modifies, or terminates them, and Canada could prompt their removal by changing its quota allocation rules.
U.S. importers and businesses that purchase the specific Canadian goods listed in Annex II will pay 50 percent more in duties on those products beginning August 19, 2026. Canadian producers and exporters of those goods face a significant new cost barrier to the U.S. market. American dairy producers and exporters are the stated beneficiaries, as the proclamation aims to pressure Canada into granting U.S. cheese the same retailer-access rights it currently gives EU cheese.