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

91 FR 46653 · published 2026-07-23 · Executive Office of the President
Mirrored from the Federal Register (retrieved 2026-08-08) — the official copy is at federalregister.gov (their site may ask for human verification).

Full text

[Federal Register Volume 91, Number 140 (Thursday, July 23, 2026)]
[Presidential Documents]
[Pages 46653-46661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14992]



Presidential Documents

Federal Register / Vol. 91 , No. 140 / Thursday, July 23, 2026 /
Presidential Documents

Proclamation 11047 of July 20, 2026

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

By the President of the United States of America

A Proclamation

1. Section 338 of the Tariff Act of 1930 (19 U.S.C.
1338) (section 338) empowers the President to, among
other things, impose duties on imports of a foreign
country to offset the burden or disadvantage from a
foreign country's discrimination against or unequal
imposition on the commerce of the United States.

2. Canada, through discrimination or an unreasonable
and unequal imposition, treats the commerce of certain
foreign countries more favorably than commerce of the
United States with respect to dairy and in turn, places
a burden and disadvantage on the commerce of the United
States. Specifically, Canada denies the commerce of the
United States benefits that Canada affords to
materially similar dairy commerce from certain other
foreign countries and thus unreasonably burdens and
disadvantages U.S. commerce compared to the commerce of
certain other foreign countries.

3. Canada maintains a tariff-rate quota (TRQ) on
cheeses of all types under the United States-Mexico-
Canada Agreement (USMCA) as well as a TRQ on cheese of
all types under the Canada-European Union (EU)
Comprehensive Economic and Trade Agreement (CETA). The
TRQs provide duty-free access for the covered dairy
products up to specified annual quantities (in-quota
quantities) and apply a customs duty to imports that
exceed the respective in-quota quantities.

4. To access the TRQs under the USMCA and the CETA,
Canada's dairy TRQ allocation measures establish
eligibility criteria. But Canada does not have the same
eligibility criteria for the USMCA and the CETA,
disfavoring the commerce of the United States. While
Canada's eligibility criteria for the USMCA dairy
TRQs--and specifically, the cheeses of all types TRQ--
do not allow retailers to obtain and use TRQ
quantities, the eligibility criteria for the CETA do
grant retailers access to the TRQ quantity for cheese
of all types.

5. By making retailers ineligible to use the USMCA TRQ
for cheeses of all types, Canada discriminates against
U.S. goods that are similar to EU goods that are
entered pursuant to the CETA cheese of all types TRQ.
Canada thus denies to the United States the favorable
treatment that Canada provides to the EU and its member
States. This discrimination impedes market access into
Canada and results in lost sales or revenues for U.S.
dairy producers and exporters, among other things. The
United States, U.S. businesses and workers, and U.S.
commerce are negatively affected by Canada's
discriminatory practices.

6. Accordingly, pursuant to section 338, I find as a
fact that Canada is discriminating in fact against the
commerce of the United States through Canada's TRQ
allocation measures imposed on U.S. cheeses of all
types under the USMCA, as compared to Canada's TRQ
allocation measures imposed on EU cheese of all types
under the CETA. I also find as a fact that this
discrimination places the commerce of the United States
at a

disadvantage compared to the commerce of the EU and its
member States. And I find as fact that Canada's
imposition is unreasonable, is not equally enforced
upon the like articles of every foreign country, and
places a burden on the commerce of the United States.

7. Further, I find that imposing additional ad valorem
duties on certain products of Canada to address the
burden or disadvantage from this discrimination or
unequal and unreasonable imposition is in the public
interest, will serve the public interest, and is
consistent with the interests of the United States.
When U.S. producers are unfairly denied export
opportunities by Canada's TRQ allocation measures, they
lose sales or revenues that support production in the
United States, among other things. This suppresses U.S.
agricultural output as well as investment and thereby
undermines employment and economic vitality in American
communities. Imposing additional duties on certain
products of Canada will, among other things, expand
opportunities for U.S. producers to compete within the
U.S. market, enhancing American production and bringing
attendant economic and societal benefits, and may spur
Canada to remove the discrimination against U.S.
cheeses of all types.

8. Accordingly, I find that it is necessary and
appropriate and in the public interest to impose an
additional ad valorem duty of 50 percent on certain
products of Canada, as identified in Annex II to this
proclamation, effective as of 12:01 a.m. eastern time
on August 19, 2026. I determine that the additional ad
valorem duties imposed in this proclamation, as
described below, will offset the burden or disadvantage
on U.S. commerce from Canada's discrimination or
unreasonable and unequal imposition. In my judgment,
the action in this proclamation is consistent with the
public interest, will serve the public interest, and is
consistent with the interests of the United States.

9. Section 338 authorizes the President, if he
determines it will serve the public interest, to offset
any burden or disadvantage placed on the commerce of
the United States by an unequal imposition or
discrimination by a foreign country by specifying and
declaring additional duties not to exceed 50 percent ad
valorem (or its equivalent) and not to take effect
earlier than 30 days after the President's proclamation
finding that a foreign country imposes an unreasonable
charge, exaction, regulation, or limitation that is not
equally enforced on the like articles of every foreign
country, or discriminates in fact against U.S. commerce
in a way that places the commerce of the United States
at a disadvantage compared to the commerce of any
foreign country. Section 338 also authorizes the
President to suspend, revoke, supplement, or amend any
proclamation under section 338 whenever the President
deems that the public interests require such action.
Further, section 338 authorizes the President to
exclude products of the foreign country if the foreign
country maintains or increases the discrimination
against the commerce of the United States and the
President deems the exclusion to be consistent with the
public interests and the interests of the United
States.

10. Section 604 of the Trade Act of 1974, as amended
(19 U.S.C. 2483) (section 604), authorizes the
President to embody in the Harmonized Tariff Schedule
of the United States (HTSUS) the substance of statutes
affecting import treatment, and actions thereunder,
including the removal, modification, continuance, or
imposition of any rate of duty or other import
restriction.

NOW, THEREFORE, I, DONALD J. TRUMP, President of the
United States of America, by the authority vested in me
by the Constitution and the laws of the United States,
including section 338; section 301 of title 3, United
States Code; and section 604, do hereby proclaim as
follows:

(1) Except as otherwise provided in this proclamation, certain products of
Canada, as set forth in Annex II to this proclamation, imported into the
United States shall be subject to an additional ad valorem duty of 50
percent, 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.

(2) Except as otherwise provided in this proclamation and in Annex I to
this proclamation, the duties imposed in this proclamation are in addition
to any other duties, taxes, fees, exactions, and charges applicable to such
products. The duties imposed in this proclamation shall not apply to
articles subject to duties pursuant to section 232 of the Trade Expansion
Act of 1962, as amended (19 U.S.C. 1862), or articles, excluding unmanned
aircraft, subject to the World Trade Organization Agreement on Trade in
Civil Aircraft.

(3) The HTSUS is modified as provided in Annex II to this proclamation,
effective with respect to goods entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m. eastern time on August
19, 2026, and the modifications shall continue in effect, unless this
action is expressly reduced, modified, or terminated.

(4) Any product subject to the duties imposed in this proclamation, except
those eligible for admission under ``domestic status'' as described in 19
CFR 146.43, that is subject to the duties imposed in this proclamation and
that is admitted into a United States foreign trade zone on or after the
effective date of this proclamation must be admitted as ``privileged
foreign status'' as described in 19 CFR 146.41, and will be subject upon
entry for consumption to any ad valorem rate of duty related to the
classification under the applicable HTSUS subheading.

(5) The head of each executive department and agency (agency) is authorized
to and shall take all appropriate measures within the agency's authority to
implement this proclamation. The head of each agency may, consistent with
applicable law, including section 301 of title 3, United States Code,
redelegate the authority to take such appropriate measures within the
agency.

(6) The Commissioner of U.S. Customs and Border Protection (CBP), in
consultation with the Secretary of the Treasury, the Secretary of Commerce,
and the United States Trade Representative, is authorized to issue such
rules, regulations, guidance, instructions, or determinations as may be
necessary to implement this proclamation and is authorized to take any
necessary measures to administer the duties imposed in this proclamation.

(7) The Commissioner of CBP, in consultation with the Secretary of the
Treasury, the Secretary of Commerce, the United States Trade
Representative, the Chairman of the United States International Trade
Commission, and any other senior official he deems appropriate, shall
determine whether any additional modifications to the HTSUS are necessary
to effectuate this proclamation and shall make such modifications to the
HTSUS through notice in the Federal Register, including any technical
correction to the annexes to this proclamation.

(8) For any rule or regulation the Commissioner of CBP makes to implement
this proclamation, the Commissioner of CBP shall, to the extent required by
law, obtain the approval of the President or the United States Trade
Representative. The United States Trade Representative is delegated the
President's approval authority in 19 U.S.C. 1338(h).

(9) Any provision of previous proclamations and Executive Orders that is
inconsistent with this proclamation is superseded to the extent of such
inconsistency. If any provision of this proclamation or the application of
any provision to any individual or circumstance is held to be invalid, the
remainder of this proclamation and the application of its provisions to any
other individuals or circumstances shall not be affected.

IN WITNESS WHEREOF, I have hereunto set my hand this
twentieth day of July, in the year of our Lord two
thousand twenty-six, and of the Independence of the
United States of America the two hundred and fifty-
first.

(Presidential Sig.)

Billing code 3395-F4-P
[Here the original prints its annex — the product lists and tables — as scanned images, which the Federal Register does not publish as text. They are in the official PDF, linked above.]

[FR Doc. 2026-14992
Filed 7-22-26; 11:15 am]
Billing code 7020-02-C

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