President Donald J. Trump announced on July 20 the imposition of an additional ad valorem duty of 50 percent on certain products imported from Canada, citing discrimination against United States commerce with respect to dairy. The new duties will take effect at 12:01 a.m. eastern time on August 19, 2026.
According to the proclamation, Canada maintains tariff-rate quotas (TRQs) for cheeses under both the United States-Mexico-Canada Agreement (USMCA) and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). These TRQs allow duty-free access up to specified annual quantities, with customs duties applied to imports exceeding those amounts. However, eligibility criteria for accessing these TRQs differ between agreements; retailers are not allowed access under USMCA but are permitted under CETA.
The President said this difference in treatment disadvantages U.S. commerce compared to European Union member states and results in lost sales or revenues for U.S. dairy producers and exporters. “Canada thus denies to the United States the favorable treatment that Canada provides to the EU and its member States,” Trump said in the proclamation.
The action is being taken pursuant to Section 338 of the Tariff Act of 1930, which allows for additional duties if a foreign country imposes unreasonable or unequal restrictions that disadvantage U.S. commerce. The President said imposing these duties is necessary and appropriate in order to offset this burden or disadvantage placed upon American producers by Canada’s discriminatory measures.
The proclamation authorizes relevant executive departments and agencies, including U.S. Customs and Border Protection (CBP), in consultation with other officials such as the Secretary of Commerce and United States Trade Representative, to implement all appropriate measures related to these new tariffs.