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United States announces import bans and modified tariffs on Canadian alcoholic beverages, dairy, and motor vehicle-related products

Import bans will take effect on September 29, 2026, and product additions and removals will take effect on September 15, 2026.

september 9, 2026

The White House announced that President Trump signed five proclamations modifying trade actions taken under Section 338 of the Tariff Act of 1930 in response to Canada's continued “discrimination against U.S. commerce” and newly imposed retaliatory tariffs on approximately $20 billion of U.S. exports.

The actions include:

  • Import ban on certain Canadian alcoholic beverages
    The president issued a proclamation excluding certain Canadian alcoholic beverages from importation into the United States, citing continued discrimination against U.S. alcoholic beverages and additional Canadian retaliatory measures. The import ban applies to covered products imported on or after September 29, 2026.
  • Import ban on certain Canadian dairy products
    A separate proclamation excludes certain Canadian dairy products from importation into the United States based on the administration's determination that Canada has maintained discrimination against U.S. dairy exports. The import ban takes effect September 29, 2026.
  • Import ban on certain products related to the motor vehicle dispute
    The president also issued a proclamation excluding certain Canadian products currently subject to Section 338 duties imposed in connection with Canada's motor vehicle tariff scheme from importation into the United States. The import ban takes effect September 29, 2026.
  • Modification of existing 50% duties on Canadian alcoholic beverage-related products
    A proclamation modifies the scope of products subject to the 50% ad valorem duties imposed under Proclamation 11046. Certain products will be added to the tariff list and others are being removed. The changes take effect September 15, 2026.
  • Modification of existing 50% duties on products related to the motor vehicle dispute
    An additional proclamation further modifies the scope of products subject to the 50% ad valorem duties imposed under Proclamation 11048. According to the White House, certain products will be removed from the tariff lists and replaced with others to better serve the public interest while continuing to offset burdens on U.S. commerce. These changes take effect September 15, 2026.

According to a related White House release, the Section 338 duties apply in addition to duties imposed under Section 232 of the Trade Expansion Act of 1962 and apply regardless of whether the goods qualify under the United States-Mexico-Canada Agreement (USMCA). 

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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