in effect
This is a presidential proclamation issued July 20, 2026, invoking Section 338 of the Tariff Act of 1930 to impose retaliatory import duties on certain Canadian goods. The President formally found that Canadian provinces and territories discriminated against U.S. alcoholic beverages without applying similar restrictions to other countries, and directed new tariffs to offset that disadvantage.
Starting at 12:01 a.m. Eastern time on August 19, 2026, an additional 50 percent tariff applies to specific Canadian products listed in Annex II of the proclamation. These duties stack on top of any existing tariffs already owed, though goods already subject to Section 232 steel/aluminum duties or covered by the civil aircraft trade agreement are excluded. The proclamation traces the action to a roughly 81 percent drop in U.S. alcoholic beverage exports to Canada — from about $718 million to about $137 million — over the year following March 2025 bans by Canadian provinces. U.S. Customs and Border Protection is authorized to issue rules implementing the tariffs and may make technical corrections to the tariff schedule. The duties remain in effect indefinitely unless the President modifies or ends them.
U.S. importers and businesses that bring the listed Canadian goods into the United States will pay the additional 50 percent duty starting August 19, 2026, which typically raises costs that can be passed along in the supply chain. Canadian exporters of those goods face reduced price competitiveness in the U.S. market. U.S. alcoholic beverage producers — including distilleries, wineries, and breweries — are the stated beneficiaries, as the tariffs are intended to pressure Canada to lift its provincial bans and restore U.S. market access there.