Economic & Trade Policy
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION 1. In Proclamation 11047 of July 20, 2026 (Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Dairy), I found as a fact that Canada is discriminating in fact against the commerce of the United States through Canada’s tariff-rate quota allocation measures imposed on U.S. cheeses of all types; that this discrimination places the commerce of the United States at a disadvantage compared to the commerce of other countries; and that Canada’s imposition is unreasonable, is not equally enforced upon the like articles of every foreign country, and places a burden on the commerce of the United States. To offset the burden or disadvantage on U.S. commerce from Canada’s discrimination or unreasonable and unequal imposition on U.S. dairy, I imposed under section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) (section 338) additional ad valorem duties, effective August 19, 2026, on certain products of Canada. 2. In Proclamation 11056 of August 18, 2026 (Temporary Suspension of Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages, Dairy, and Motor Vehicles), I temporarily suspended for 3 days the effective date of the additional ad valorem duties imposed under Proclamation 11047 after Canada expressed a commitment to remove the discrimination or unreasonable and unequal imposition at issue in Proclamation 11047. 3. On August 21, 2026, Canada reneged on its commitment, ceased negotiating in good faith, and did not remove the discrimination or unreasonable and unequal imposition at issue in Proclamation 11047. 4. Accordingly, at 12:01 a.m. eastern time on August 22, 2026, the 3-day suspension imposed by Proclamation 11056 lapsed, and the additional ad valorem duties imposed under Proclamation 11047 became effective. 5. I have received certain information, opinions, and recommendations from senior executive branch officials on the status of the circumstances involved in Proclamation 11047 and of negotiations between the United States and Canada regarding the discrimination or imposition described in Proclamation 11047. According to senior executive branch officials, after the issuance of Proclamation 11047 and after the additional ad valorem duties imposed in Proclamation 11047 became effective, Canada did not revoke its tariff-rate quota allocation measures involving dairy but has maintained the discrimination or unreasonable and unequal imposition at issue in Proclamation 11047. In my senior executive branch officials’ opinion, an import ban on certain Canadian products currently subject to the additional ad valorem duties imposed in Proclamation 11047 is consistent with the interests of the United States and the public interests. 6. After considering the information, opinions, and recommendations that have been provided to me by senior executive branch officials, among other relevant information and considerations, I find it to be a fact that Canada has, after the issuance of Proclamation 11047 and after the additional ad valorem duties imposed in Proclamation 11047 became effective, maintained the discriminations against the commerce of the United States described in Proclamation 11047. 7. I determine that it is consistent with the interests of the United States to issue this further proclamation directing that certain products of Canada shall be excluded from importation into the United States. I determine that it is consistent with the public interests to exclude from importation into the United States certain products of Canada that are currently subject to the additional ad valorem duties imposed in Proclamation 11047, as further detailed in the Annex to this proclamation. 8. In my judgment, the action in this proclamation is consistent with the public interests and the interests of the United States, is required by the public interests, and will serve the public interest. 9. Section 338 authorizes the President, if he determines it will serve the public interest, to offset any burden or disadvantage placed on the commerce of the United States by an unequal imposition or discrimination by a foreign country by specifying and declaring additional duties not to exceed 50 percent ad valorem (or its equivalent) and not to take effect earlier than 30 days after the President’s proclamation finding that a foreign country is imposing an unreasonable charge, exaction, regulation, or limitation that is not equally enforced on the like articles of every foreign country, or discriminates in fact against U.S. commerce in a way that places the commerce of the United States at a disadvantage compared to the commerce of any foreign country. Section 338 also authorizes the President to suspend, revoke, supplement, or amend any proclamation under section 338 whenever the President deems that the public interests require such action. Further, section 338 authorizes the President to exclude from importation articles of the foreign country if the foreign country maintains or increases the discrimination against the commerce of the United States and the President deems the exclusion to be consistent with the public interests and the interests of the United States. 10. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483) (section 604), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States, including section 338; section 301 of title 3, United States Code; and section 604, do hereby proclaim as follows: (1) Except as otherwise provided in this proclamation, certain products of Canada, as set forth in the Annex to this proclamation, are excluded from importation into the United States, effective with respect to goods imported on or after 12:01 a.m. eastern time on September 29, 2026. (2) Products that will be subject to the import ban in this proclamation that were imported, but not yet entered for consumption, or withdrawn from warehouse for consumption, prior to September 29, 2026, will remain subject to the 50 percent duty rate established by Proclamation 11047. (3) Besides changing certain products from being subject to the additional ad valorem duties imposed in Proclamation 11047 to being subject to the import ban set forth in this proclamation, this proclamation does not otherwise affect the products, as further established in the Proclamation of September 8, 2026 (Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Dairy), that are subject to the additional ad valorem duties imposed in Proclamation 11047. (4) The head of each executive department and agency (agency) is authorized to and shall take all appropriate measures within the agency’s authority to implement this proclamation. The head of each agency may, consistent with applicable law, including section 301 of title 3, United States Code, redelegate the authority to take such appropriate measures within the agency. (5) The Commissioner of U.S. Customs and Border Protection (CBP), in consultation with the Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative, is authorized to issue such rules, regulations, guidance, instructions, or determinations as may be necessary to implement this proclamation and is authorized to take any necessary measures to administer the import ban imposed in this proclamation. (6) The Commissioner of CBP, in consultation with the Secretary of the Treasury, the Secretary of Commerce, the United States Trade Representative, the Chairman of the United States International Trade Commission, and any other senior executive branch official he deems appropriate, shall determine whether any additional modifications to the HTSUS are necessary to effectuate this proclamation and shall make such modifications to the HTSUS through notice in the Federal Register, including any technical or ministerial correction to the Annex to this proclamation. (7) For any rule or regulation the Commissioner of CBP makes to implement this proclamation, the Commissioner of CBP shall, to the extent required by law, obtain the approval of the President or the United States Trade Representative. The United States Trade Representative is delegated the President’s approval authority in 19 U.S.C. 1338(h). (8) Any provision of previous proclamations and Executive Orders that is inconsistent with this proclamation is superseded to the extent of such inconsistency. (9)(a) If any provision of this proclamation or the application of any provision to any individual or circumstance is held to be invalid, the remainder of this proclamation and the application of its provisions to any other individuals or circumstances shall not be affected. (b) If the import ban imposed in this proclamation is invalidated in whole or in part as to any import, then the 50 percent ad valorem duty imposed in Proclamation 11047 shall apply to the import to which the invalidated import ban or the invalidated part of the import ban had applied before its invalidation. No other import ban imposed in this proclamation shall be affected, and no additional ad valorem duty imposed in Proclamation 11047 or a proclamation issued subsequent to Proclamation 11047 shall be affected. This severability provision, including its operative effect if triggered, is consistent with the public interests and the interests of the United States, is required by the public interests, and will serve the public interest. IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of September, in the year of our Lord two thousand twenty-six, and of the Independence of the United States of America the two hundred and fifty-first. ANNEX DONALD J. TRUMP Notifications at URL https://www.whitehouse.gov/presidential-actions/2026/09/excluding-certain-canadian-products-from-importation-into-the-united-states-in-response-to-continued-discrimination-against-the-commerce-of-the-united-states-with-respect-to-dairy/
What is the Presidential Action, explain the Purpose in layman’s terms in 10 lines.
This proclamation announces a ban on certain Canadian products from entering the United States because Canada continues to discriminate against U.S. dairy products through unfair tariff rules. Previously, the U.S. imposed extra taxes on these Canadian goods to balance the trade, but Canada did not change its policies as promised. Therefore, the U.S. is now banning imports of these products starting September 29, 2026, to protect American farmers and businesses. This action aims to ensure fair trade and prevent Canada from disadvantaging U.S. commerce. The ban targets specific Canadian products listed in the annex. It is a response to Canada’s failure to negotiate in good faith and remove trade barriers. The proclamation is based on U.S. trade laws that allow such measures to protect domestic commerce. The ban will be enforced by U.S. Customs and Border Protection and other agencies.
What are the Actions Directed to Agencies (Also identify which agencies) by this executive order. Explain in 10-15 lines
The proclamation directs heads of all executive departments and agencies to take all necessary actions within their authority to enforce the import ban. Specifically, U.S. Customs and Border Protection (CBP) is empowered to issue rules, regulations, guidance, and instructions to implement and administer the ban. CBP will work in consultation with the Secretary of the Treasury, the Secretary of Commerce, and the United States Trade Representative to ensure smooth enforcement. The Commissioner of CBP is also tasked with determining if modifications to the Harmonized Tariff Schedule of the United States (HTSUS) are needed and will publish any such changes in the Federal Register. The proclamation authorizes delegation of authority within agencies to ensure effective implementation. The United States Trade Representative holds approval authority over CBP’s implementing rules as required by law. These coordinated agency actions ensure the import ban is legally and operationally enforced.
Are there any deadlines written in this executive order, and if so, what they are in 5 lines.
Yes, the import ban takes effect at 12:01 a.m. Eastern Time on September 29, 2026, for goods imported on or after that date. Products imported before this date but not yet entered for consumption remain subject to the previously imposed 50% ad valorem duties. The proclamation also references a 30-day waiting period before additional duties took effect in earlier proclamations. No other explicit deadlines are specified.
What will be the impact on citizens, states, federal agencies, businesses for this executive order. Explain in detail in 20 lines
This executive order will primarily impact U.S. dairy producers and related agricultural sectors by aiming to protect them from unfair foreign competition due to Canadian tariff discrimination. American dairy farmers may benefit from reduced competition and potentially improved market prices. Businesses that rely on Canadian imports subject to the ban will need to find alternative suppliers or adjust supply chains, potentially increasing costs. Consumers might experience changes in product availability or prices, particularly for dairy-related goods. States with significant dairy industries, such as Wisconsin and California, may see economic benefits. Federal agencies, especially Customs and Border Protection, will face increased enforcement responsibilities, requiring resource allocation for inspection and regulation. Trade and commerce departments will monitor the ban’s economic effects and manage diplomatic relations. The ban could strain U.S.-Canada trade relations, affecting other sectors like automotive and alcohol exports. Importers and distributors of Canadian products will need to comply with new restrictions, possibly facing legal and logistical challenges. The ban may prompt retaliatory measures from Canada, impacting broader economic activities. Overall, the proclamation aims to level the playing field for U.S. commerce but may cause short-term disruptions in trade and supply chains.
Are there any budget or funding directions through this executive order.
The proclamation does not specifically direct new budget appropriations or funding. However, it authorizes federal agencies, particularly U.S. Customs and Border Protection, to take necessary measures to implement the import ban, which may require the use of existing resources or reallocation of agency budgets. Any additional funding needs would presumably be addressed through standard appropriations processes.
What is the political context of this executive order in 5-10 lines.
This proclamation occurs amid ongoing trade tensions between the United States and Canada over dairy tariffs and market access. The U.S. administration views Canada’s tariff-rate quota system as discriminatory and harmful to American dairy producers. Previous negotiations failed to resolve the dispute, prompting the U.S. to escalate trade measures. The action reflects a broader U.S. policy of using trade enforcement tools to protect domestic industries and assert leverage in trade disputes. It also signals a firm stance on enforcing trade laws and addressing perceived unfair trade practices by close allies. The proclamation may influence future trade negotiations and political relations between the two countries.
What are the short term and long term effects of this executive order and what should be monitored in terms of impact in 20-25 lines.
Short term effects include immediate disruption to Canadian exports of targeted products to the U.S., increased enforcement activity at ports of entry, and potential price fluctuations in U.S. dairy markets. Importers and distributors will need to adjust supply chains quickly, possibly incurring higher costs. Diplomatic tensions may rise as Canada responds to the ban. Monitoring should focus on trade volumes, price changes for dairy and related goods, and enforcement efficacy. Long term effects could involve shifts in trade patterns, with U.S. importers seeking alternative suppliers or domestic producers expanding capacity. The ban may incentivize Canada to revise its tariff policies or negotiate new trade terms. Economic impacts on U.S. dairy farmers and related industries should be tracked to assess whether the ban effectively offsets the disadvantage caused by Canadian measures. Monitoring should also include any retaliatory trade actions by Canada, effects on bilateral relations, and compliance with WTO rules. The impact on consumers, including product availability and prices, should be evaluated. Additionally, the legal durability of the ban and any challenges in courts or trade bodies warrant attention. The effectiveness of agency coordination and regulatory implementation will influence the overall success of the policy.
What are the criticisms or risks that need to be monitored in 15-20 lines.
Critics may argue the import ban risks escalating trade conflicts, potentially leading to retaliatory tariffs or broader trade wars with Canada, a key U.S. ally. The ban could disrupt supply chains and increase costs for U.S. businesses and consumers. There is a risk that the ban may not effectively compel Canada to change its tariff policies, prolonging trade tensions. Legal challenges could arise, questioning the validity or scope of the proclamation under U.S. or international trade law. The economic impact on Canadian producers and cross-border communities may fuel political backlash. Enforcement challenges could strain federal agencies and cause delays in trade processing. The ban might also affect other sectors indirectly tied to Canadian trade. Monitoring is needed for unintended consequences on bilateral relations, market stability, and compliance with trade agreements. Transparency and communication with stakeholders will be critical to mitigate negative impacts.
Are there any past precedents of this executive order by previous presidents or by the judicial court, which could support or not support the validity in 10-15 lines.
Similar trade enforcement actions have been taken by previous presidents under Section 301 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930 to address unfair foreign trade practices. For example, prior administrations have imposed tariffs or import restrictions on countries like China and the European Union over discriminatory trade policies. The use of additional ad valorem duties and import bans to offset discrimination is a recognized legal tool in U.S. trade law. Courts have generally upheld presidential authority to impose such measures when justified by evidence of unfair trade practices, provided procedural requirements are met. However, legal challenges sometimes arise over the scope and application of these powers. WTO dispute rulings have occasionally found U.S. trade measures inconsistent with international obligations, but the U.S. maintains the right to take certain retaliatory actions under trade agreements. This proclamation aligns with established precedents but may face scrutiny if challenged.
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