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

This Proclamation, issued on July 20, 2026, imposes a 50% tariff on a specific list of Canadian goods (effective August 19, 2026) in retaliation for what the administration describes as discriminatory trade practices regarding dairy.Key details include:The Conflict: The U.S. finds that Canada is discriminating against American dairy producers by denying U.S. retailers access to "cheese of all types" import quotas (TRQs).The "Unequal" Treatment: The Proclamation notes that while Canada allows retailers to use these quotas for European Union cheese under the CETA agreement, it prohibits them from doing so for U.S. cheese under the USMCA, creating a disadvantage for American commerce.Legal Authority: President Trump invoked Section 338 of the Tariff Act of 1930, which allows the President to impose duties (up to 50%) to offset the burden of foreign discrimination against U.S. products.Scope and Exemptions: The new duties apply to products listed in the proclamation’s annex (previously noted to include items like wine, hockey sticks, and cement). They exclude goods already subject to Section 232 duties (such as steel and aluminum) and certain civil aircraft parts.Goal: The tariffs are intended to offset lost revenue for U.S. dairy producers and pressure Canada to equalize its trade regulations.