Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Motor Vehicles
1. Purpose
Proclamation 11048 aims to impose additional duties on certain imports from Canada to counteract Canadian tariffs that discriminate against U.S. motor vehicle commerce, thereby leveling the playing field for U.S. exports.
2. Key Actions And Directives
- Imposition of Additional Duties: A 50 percent ad valorem duty will be applied to designated products imported from Canada.
3. Important Points
- Legal Authority for Action: The President acts under Section 338 of the Tariff Act of 1930 to impose these duties, aimed at addressing unfair trade practices.
- Impact of Canadian Tariffs: Canada's 25 percent tariff and quota significantly decreased U.S. motor vehicle exports to Canada by approximately 22 percent.
- Enforcement Responsibility: Implementation of this proclamation is delegated to the heads of executive departments, with specific duties assigned to the Commissioner of U.S. Customs and Border Protection.
- Effective Date of Duties: The additional duties will come into effect at 12:01 a.m. eastern time on August 19, 2026.
- Anticipated Outcomes: The additional duties are intended to bolster U.S. production and may incentivize Canada to remove discriminatory tariffs.
- Tariff Schedule Adjustments: Section 604 of the Trade Act of 1974 allows for these actions to be incorporated into the Harmonized Tariff Schedule of the U.S.
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