ExecutiveOrdersEO
Proc 11046ProclamationTrump 47 · R

Proclamation 11046

Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages

This proclamation imposes an additional 50 percent ad valorem duty on certain Canadian products, effective August 19, 2026, using Section 338 of the Tariff Act of 1930. The action is framed as retaliation for Canadian provincial and territorial bans on U.S. alcoholic beverages that began in March 2025, which caused U.S. alcohol exports to Canada to drop approximately 81 percent.

Federal Register Open PDF 91 FR 46639

Impact dates

  1. Yesterday

    50% additional ad valorem duties take effect on certain Canadian products; HTSUS modifications effective

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

AgricultureOther industrial

Mechanisms

Tariff

Role pressure

  • ProtectiveDomestic producer — U.S. alcoholic beverage producers gain competitive position in home market as Canadian products face 50% tariff; also intended to pressure Canada to reopen Canadian market to U.S. exports
  • AdverseImporter — U.S. importers of covered Canadian goods face 50% cost increase, requiring price pass-through, margin absorption, or sourcing shifts
  • AdverseTrading-partner exporter — Canadian exporters of products in Annex II face significant U.S. market access barrier; Canadian alcohol and related industries lose U.S. export competitiveness
  • UncertainDownstream manufacturer — Impact depends on Annex II coverage; if inputs from Canada are affected, U.S. manufacturers face cost increases

Geographies

USCAEUJPAU

Exposure dates

  • — 50% additional ad valorem duties take effect on certain Canadian products; HTSUS modifications effective

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MAAPLAppleADMArcher Daniels MidlandBGBungeCATCaterpillarCTVACortevaFCXFreeport-McMoRanGEVGE VernovaHONHoneywellSPYSPDR S&P 500 ETFTSNTyson Foods

Confidence: medium · Policy alerts

Key directives

  • Impose 50% additional ad valorem duty on certain Canadian products listed in Annex II
  • Effective date: 12:01 a.m. eastern time on August 19, 2026
  • HTSUS modified as specified in Annex II
  • CBP Commissioner to issue implementing rules in consultation with Treasury, Commerce, and USTR
  • CBP Commissioner to determine additional HTSUS modifications via Federal Register notice
  • Agency heads to take all appropriate measures to implement
  • USTR delegated presidential approval authority under 19 U.S.C. 1338(h)

Who is ordered

Timeline

Immediate

  • Proclamation signed and published July 20, 2026
  • Public notice of 50% tariff on certain Canadian products

Near term (90d)

  • August 19, 2026: Additional 50% duties take effect at 12:01 a.m. ET
  • CBP to issue implementing rules and regulations
  • HTSUS modifications take effect

Long term

  • Potential Canadian retaliation or removal of alcohol bans
  • Possible modification or termination of duties if Canada changes policy
  • Structural shift in U.S.-Canada trade patterns for affected sectors

Risks & tensions

  • Escalation risk: Canada may retaliate with countermeasures rather than lift alcohol bans
  • WTO consistency tension: Section 338 is rarely used and may face challenge; WTO aircraft exemption clause suggests awareness of trade law constraints
  • Uncertainty: Annex II product list not visible in excerpted text, limiting precise sectoral impact assessment
  • Domestic political tension: U.S. consumers face higher prices on affected Canadian goods
  • Bilateral relationship strain: Continues pattern of tariff-based pressure on Canada
Proclamation 11046: Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages · Executive Orders