[Federal Register Volume 91, Number 140 (Thursday, July 23, 2026)]
[Presidential Documents]
[Pages 46663-46688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14997]
Presidential Documents
Federal Register / Vol. 91 , No. 140 / Thursday, July 23, 2026 /
Presidential Documents
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Proclamation 11048 of July 20, 2026
Imposing Additional Duties To Offset Canadian
Discrimination Against the Commerce of the United
States With Respect to Motor Vehicles
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 against or an
unreasonable and unequal imposition on U.S. auto and
auto parts exports, 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 imposed a tariff system on only
U.S. motor vehicles and treats the commerce of foreign
countries more favorably than commerce of the United
States with respect to motor vehicles, as defined in
Canada's United States Surtax Order (Motor Vehicles
2025), SOR/2025-118. By denying to the commerce of the
United States the benefits afforded to like commerce
from other countries, Canada discriminates against U.S.
commerce, disadvantaging the commerce of the United
States compared to the commerce of other countries. And
Canada's imposition on U.S. motor vehicles is
unreasonable, is not equally applied upon the like
articles of every foreign country, and places a burden
on the commerce of the United States but not on the
commerce of other countries.
3. Since April 9, 2025, Canada has maintained a 25
percent tariff rate on imports of U.S. motor vehicles
that do not qualify for preferential, duty-free
treatment under the United States-Mexico-Canada
Agreement (USMCA). For U.S. motor vehicles that do
qualify for preferential, duty-free treatment under the
USMCA, Canada applies a 25 percent tariff rate on the
value of all goods that do not originate in Canada or
Mexico used in the production of the vehicle, up to 85
percent of the total value of the vehicle. In addition,
Canada maintains a tariff-rate quota (TRQ) on U.S.
motor vehicles that qualify for preferential, duty-free
treatment under the USMCA. The TRQ for each automaker
limits duty-free access for the covered motor vehicles
from that automaker up to certain annual quantities
(in-quota quantities) and applies the tariffs described
above on products that exceed the in-quota quantities.
The TRQs are granted to induce companies to invest in
production in Canada, and Canada has announced that it
reduced the TRQs for U.S. companies that moved
manufacturing from Canada to the United States. Canada
does not publicly disclose the company-specific, in-
quota quantities, but it has published these new tariff
rates in Customs Notice 25-15: United States Surtax
Order (Motor Vehicles 2025).
4. The United States, U.S. businesses and workers, and
U.S. commerce suffer from Canada's discriminatory,
unequal, and unreasonable tariff scheme. Following the
implementation of the tariff scheme, U.S. exports of
motor vehicles to Canada fell precipitously. Comparing
the period from April 2025 through March 2026 to the
same period in 2024-2025, imports of U.S.
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motor vehicles to Canada decreased by approximately 22
percent (from approximately $25.9 billion to
approximately $20.3 billion).
5. Canada only applies the tariff scheme to U.S.-origin
motor vehicles. The tariff scheme does not apply to the
motor vehicles of any other country. Indeed, exports of
motor vehicles from other countries to Canada have
increased to meet the demand previously filled by U.S.
exports. For example, comparing the period from April
2025 through February 2026 to the same period in 2024-
2025, Canadian imports of Mexican motor vehicles
increased by approximately 23.6 percent, and imports
from Japan, Korea, and Germany increased by rates
ranging from approximately 10.1 percent to
approximately 13.5 percent. In total, Canadian imports
of motor vehicles from countries other than the United
States increased by approximately $2.85 billion over
the same period, with Mexico accounting for almost $2
billion of the increase.
6. Accordingly, pursuant to section 338, I find as a
fact that Canada is discriminating against the commerce
of the United States through Canada's motor vehicle
tariff scheme. I also find as a fact that this
discrimination places the commerce of the United States
at a disadvantage compared to the commerce of other
countries. 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 motor vehicle tariffs and
TRQs, they lose revenues that support production in the
United States, among other things. This suppresses U.S.
industrial 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. motor
vehicles.
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
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.
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 articles of the foreign country if the foreign
country maintains or increases the discrimination
against the
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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.
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(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.)
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[FR Doc. 2026-14997
Filed 7-22-26; 11:15 am]
Billing code 7020-02-C