President Donald Trump signed five proclamations ordering import bans on certain Canadian dairy, alcoholic beverage and motor-vehicle products while revising the scope of 50% tariffs already imposed on other Canadian goods.
The bans are scheduled to take effect Sept. 29, while additions and removals from the existing tariff lists take effect Sept. 15, according to the White House. The administration said the actions respond to continued Canadian restrictions on U.S. exports and a new round of Canadian tariffs covering about $20 billion in American goods.
The White House said Canada's new retaliatory tariffs include steel, dairy products and agricultural equipment. It also accused Canada of continuing discriminatory treatment of U.S. alcoholic beverages, dairy exports and motor vehicles after trade talks broke down in August.
The proclamations were issued under Section 338 of the Tariff Act of 1930, which allows a president to impose duties of up to 50% against a country found to discriminate against U.S. commerce. The law also permits import exclusions when the foreign government maintains or increases the disputed treatment and the president finds a ban serves the public interest.
Bans replace tariffs on some goods
Separate proclamations cover certain Canadian alcoholic beverages, dairy products and motor-vehicle products. Goods listed in the proclamations' annexes will be barred from importation beginning at 12:01 a.m. Eastern time Sept. 29.
The retrieved proclamation text does not identify every covered product because the product lists appear in annexes. Each order says products moved into the ban had previously been subject to a 50% duty under proclamations Trump signed July 20.
Canadian goods imported before Sept. 29 but not yet entered for consumption or withdrawn from a warehouse will remain subject to the 50% duty rather than the import ban. If a court invalidates a ban for a covered import, the applicable proclamation says the 50% duty would take its place.
The alcohol order points to Saskatchewan's Aug. 27 announcement that it would impose an additional 50% levy on U.S. alcoholic beverages beginning Sept. 8. The White House described Saskatchewan as one of two Canadian provinces that had not already banned U.S. alcoholic beverages when the original July tariff action took effect.
The dairy proclamation says Canada retained tariff-rate quota allocation measures affecting U.S. cheeses. The motor-vehicle proclamation says Canada kept what the administration described as a discriminatory tariff structure affecting U.S. autos and auto parts.
Tariff lists change Sept. 15
Two other proclamations revise the products covered by the July actions involving alcoholic beverages and motor vehicles. The changes add some Canadian products to the 50% duty and remove others, beginning at 12:01 a.m. Eastern time Sept. 15.
The White House fact sheet identified rock salt and cement as examples of products being removed from the tariff lists. It said new products would be added, ranging from all-terrain vehicles to additional dairy products, although the complete additions and removals are contained in the proclamations' annexes.
The administration said the Section 338 duties apply to covered goods even when they qualify as originating products under the U.S.-Mexico-Canada Agreement. The duties also apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962.
Trump first imposed the 50% duties on the disputed Canadian products in three July 20 proclamations. He suspended their Aug. 19 effective date for three days after Canada expressed a commitment to address the disputed measures, according to the new orders.
The White House said Canada stopped negotiating in good faith and did not remove the measures by Aug. 21. The suspension expired at 12:01 a.m. Aug. 22, putting the 50% duties into effect.
Customs officials will implement the orders
U.S. Customs and Border Protection will administer the bans and tariff changes in consultation with the Treasury and Commerce departments and the Office of the U.S. Trade Representative. The proclamations authorize CBP to issue regulations, guidance and instructions and to make needed changes to the Harmonized Tariff Schedule through Federal Register notices.
The orders also authorize executive departments and agencies to take steps within their existing authority to carry out the changes. Any prior proclamation or executive order that conflicts with the new actions is superseded to the extent of that conflict.
Separately, Trump directed the U.S. trade representative and the General Services Administration to remove $50 billion in Canadian-origin products from GSA's Multiple Award Schedules, according to the White House fact sheet.
The White House framed the package as protection for U.S. farmers, manufacturers and workers. The proclamations themselves base the action on the president's findings that Canada maintained or increased measures the administration considers discriminatory against U.S. commerce.
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