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Proc 11047ProclamationTrump 47 · R Quiet signal

Proclamation 11047

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

This proclamation imposes an additional 50 percent ad valorem duty on certain Canadian products, effective August 19, 2026, to offset Canada's discriminatory dairy tariff-rate quota allocation measures under USMCA that favor EU cheese exporters over U.S. exporters. The action uses Section 338 of the Tariff Act of 1930 after finding that Canada unreasonably restricts U.S. retailers from accessing USMCA dairy TRQs while allowing EU retailers access under CETA.

Federal Register Open PDF 91 FR 46653

Impact dates

  1. Yesterday

    Additional 50% ad valorem duties take effect; HTSUS modifications effective; foreign trade zone status changes

Market exposure

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

Sectors

AgricultureSteel & aluminumAutosOil & gasOther industrial

Mechanisms

Tariff

Role pressure

  • ProtectiveDomestic producer — U.S. dairy producers gain competitive advantage in domestic market against Canadian imports; proclamation explicitly aims to expand opportunities for U.S. producers to compete within U.S. market
  • AdverseImporter — Importers of affected Canadian goods face 50% additional ad valorem duty, significantly increasing costs; specific products in Annex II not fully visible but likely broad given Section 338 authorization
  • AdverseTrading-partner exporter — Canadian exporters to U.S. face severe tariff barrier on goods in Annex II; EU dairy exporters indirectly affected if Canada adjusts TRQ allocation in response
  • MixedDownstream manufacturer — U.S. manufacturers using affected Canadian inputs face cost increases; those competing against Canadian finished goods may benefit

Geographies

USCAEU

Exposure dates

  • — Additional 50% ad valorem duties take effect; HTSUS modifications effective; foreign trade zone status changes

Illustrative public companies

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

MMM3MAAAlcoaAAPLAppleADMArcher Daniels MidlandBGBungeCATCaterpillarCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsCTVACortevaXOMExxon MobilFFordFCXFreeport-McMoRanGEVGE VernovaGMGeneral MotorsHONHoneywellHYMTFHyundai MotorNUENucorSHELShellSPYSPDR S&P 500 ETFSTLAStellantisTSLATesla

Confidence: high · Policy alerts

Key directives

  • Impose additional 50% ad valorem duty on certain Canadian products effective 12:01 a.m. ET August 19, 2026
  • Modify HTSUS as specified in Annex II effective August 19, 2026
  • Require foreign trade zone admission as 'privileged foreign status' for affected products on or after effective date
  • Agency heads to take all appropriate measures to implement proclamation
  • CBP Commissioner to issue implementing rules in consultation with Treasury, Commerce, and USTR
  • CBP Commissioner to determine necessary additional HTSUS modifications via Federal Register notice
  • USTR delegated President's approval authority under 19 U.S.C. 1338(h)

Who is ordered

Timeline

Immediate

  • Proclamation signed and published July 20-22, 2026
  • Public notification of intent to impose 50% additional duties

Near term (90d)

  • August 19, 2026: Additional 50% ad valorem duties take effect at 12:01 a.m. ET
  • CBP to issue implementing rules and regulations
  • HTSUS modifications take effect
  • Foreign trade zone admission rules change to 'privileged foreign status'

Long term

  • Potential Canadian policy change to remove dairy TRQ discrimination
  • Ongoing U.S.-Canada trade negotiations over dairy access
  • Possible modification or termination of duties if discrimination ends
  • Potential escalation to product exclusions if Canada increases discrimination

Risks & tensions

  • Potential USMCA dispute panel challenge by Canada given this is a USMCA partner
  • Risk of Canadian retaliation against U.S. agricultural or other exports
  • Uncertainty about specific products in Annex II not fully visible in excerpted text
  • Section 338's 30-day delay (not 30 days from signing but effective date appears to be 30 days after proclamation finding) may face procedural scrutiny
  • Dairy dispute echoes long-running U.S.-Canada trade tensions predating multiple administrations
Proclamation 11047: Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Dairy · Executive Orders