in effect
This is a presidential proclamation (Proclamation 11048, signed July 20, 2026) invoking Section 338 of the Tariff Act of 1930 to impose retaliatory tariffs on certain Canadian goods. It declares that Canada is discriminating against U.S. commerce by applying motor vehicle tariffs exclusively to American-made vehicles, and directs a new 50 percent duty on specified Canadian products as a countermeasure.
Starting at 12:01 a.m. Eastern time on August 19, 2026, a new 50 percent additional tariff applies to certain Canadian products listed in Annex II of the proclamation. This duty is stacked on top of any other tariffs already in effect, except for goods already covered by Section 232 national-security tariffs or certain civil aircraft. The proclamation points to Canada’s existing 25 percent surtax on U.S. motor vehicles (in place since April 9, 2025) and a tariff-rate quota system as the trigger; U.S. vehicle exports to Canada fell roughly 22 percent (from about $25.9 billion to about $20.3 billion) in the year following Canada’s action. U.S. Customs and Border Protection is authorized to issue rules implementing the new duties, and the tariff schedule (HTSUS) is amended accordingly. The President retains authority to suspend, modify, or revoke this action, and could escalate to a full import ban if Canada maintains or increases its restrictions.
U.S. importers, retailers, and consumers who buy Canadian goods covered by Annex II will face higher costs starting August 19, 2026, as the 50 percent duty raises the price of those imports at the border. Canadian exporters selling those goods to the United States will face reduced demand or pressure to absorb the cost increase. U.S. automakers and auto-parts manufacturers are the stated beneficiaries the proclamation aims to protect, as Canada’s vehicle tariffs have been redirecting Canadian buyers toward vehicles from Mexico, Japan, South Korea, and Germany.