91 FR 46639 · published 2026-07-23
· Executive Office of the President
Mirrored from the Federal Register (retrieved 2026-08-08) —
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[Federal Register Volume 91, Number 140 (Thursday, July 23, 2026)]
[Presidential Documents]
[Pages 46639-46652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14991]
Presidential Documents
Federal Register / Vol. 91 , No. 140 / Thursday, July 23, 2026 /
Presidential Documents
Proclamation 11046 of July 20, 2026
Imposing Additional Duties To Offset Canadian
Discrimination Against the Commerce of the United
States With Respect to Alcoholic Beverages
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, burdens U.S. commerce but not
the commerce of other countries and disadvantages U.S.
commerce compared to the commerce of other countries.
Specifically, Canada unreasonably burdens and
disadvantages U.S. alcoholic beverages but not
alcoholic beverages of other countries.
3. The provinces and territories of Canada generally
regulate the distribution and sale of distilled
spirits, wine, beer, and other alcoholic beverages
(collectively, alcoholic beverages) in their respective
jurisdictions. All provinces and territories control
the wholesale of alcoholic beverages, and most have a
hybrid public/private system for the retail of
alcoholic beverages.
4. Beginning in March 2025, all Canadian provinces and
territories halted the purchase, distribution, or
retailing of U.S. alcoholic beverages. For example, on
March 4, 2025, the Liquor Control Board of Ontario
(LCBO) ceased purchasing all U.S. products and canceled
existing orders where contractually possible; removed
all U.S. products from wholesale product catalogues and
retail eCommerce sites; and removed all U.S. products
from LCBO retail stores and outlets. Similarly, on
March 4, 2025, the province of Quebec asked the
Soci[eacute]t[eacute] des Alcools du Qu[eacute]bec to
remove all U.S. products from its shelves and to stop
supplying U.S. alcoholic beverages to grocery stores,
liquor stores, bars, and restaurants. Only the
provinces of Alberta and Saskatchewan subsequently
lifted their bans on the purchase, distribution, or
retailing of U.S. alcoholic beverages, in June 2025.
5. The United States, U.S. businesses and workers, and
U.S. commerce suffer from the Canadian provinces' and
territories' unreasonable and unequal impositions and
discriminations with respect to U.S. alcoholic
beverages. Following the implementation of the bans,
U.S. exports of alcoholic beverages to Canada fell
precipitously. Comparing the period from March 2025
through February 2026 to the same period in 2024-2025,
Canadian imports of U.S. alcoholic beverages decreased
by approximately 81 percent (from approximately $718
million to approximately $137 million).
6. The Canadian provinces and territories have not
instituted or maintained similar bans or restrictions
on any other country since March 2025, thereby
benefitting other countries at the expense of the
United States. Indeed, exports of alcoholic beverages
from other countries to Canada have increased to meet
the demand previously filled by U.S. exports. For
example, comparing March 2025 through February 2026 to
the same period in 2024-2025, Canadian imports of
alcoholic beverages from Chile, Japan, Argentina,
Ireland, New Zealand, and Australia significantly
increased, with increases ranging
from approximately 13 percent to approximately 26
percent. Despite a nearly 12 percent decline in total
imports of alcoholic beverages into Canada, imports
into Canada from countries other than the United States
increased by over $170 million from March 2025 through
February 2026 compared to the same period in 2024-2025,
with imports into Canada from the European Union
accounting for over $100 million of this increase.
7. Accordingly, pursuant to section 338, I find as a
fact that through the regulation, restriction, or
prohibition of U.S. alcoholic beverages, Canada has
imposed an unreasonable regulation or limitation on
articles wholly or in part the growth or products of
the United States and is discriminating in fact against
the commerce of the United States in such manner as to
place it at a disadvantage compared to the commerce of
other countries, by banning the purchase, distribution,
or retailing of U.S. alcoholic beverages while not
banning or similarly restricting such products from
other countries. I also find as a fact that this
unequal and unreasonable imposition or discrimination
places a burden on the commerce of the United States
and places a disadvantage on the commerce of the United
States.
8. 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, as they are in Canada due to Canadian
provinces' and territories' bans on the purchase,
distribution, or retailing of U.S. alcoholic beverages,
they lose sales that support production in the United
States, among other harms to the U.S. alcoholic
beverage industry. The unreasonable, unequal, and
discriminatory actions by Canada suppress U.S.
manufacturing and agricultural output, as well as
investment, undermining 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, revitalizing U.S.
production and bringing attendant economic and societal
benefits, and may spur Canada to remove the
unreasonable and unequal imposition on and
discrimination against commerce in U.S. alcoholic
beverages.
9. 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
unequal and unreasonable 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.
10. 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 articles 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.
11. 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. 2026-14991
Filed 7-22-26; 11:15 am]
Billing code 7020-02-C
Public-domain US Government work, mirrored verbatim by the Trimtab US Trade Ledger for citation stability. All tariff paper →