Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages
Record date: 2026-07-23
( printed page 46639) Proclamation 11046 of July 20, 2026 Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages A Proclamation 1. Section 338 of the Tariff Act of 1930 ( 19 U.S.C. 1338 ) (section 338) empowers the President to, among other things, impose duties on imports of a foreign country to offset the burden or disadvantage from a foreign country's discrimination against or unequal imposition on the commerce of the United States. 2. Canada, through discrimination or an
What this record contains
- Federal Register document
- 2026-14991
- Publication date
- 2026-07-23
- Citation
- 91 FR 46639
- Issuing office
- Executive Office of the President
Official record excerpt
( printed page 46639) Proclamation 11046 of July 20, 2026 Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages A Proclamation 1. Section 338 of the Tariff Act of 1930 ( 19 U.S.C. 1338 ) (section 338) empowers the President to, among other things, impose duties on imports of a foreign country to offset the burden or disadvantage from a foreign country's discrimination against or unequal imposition on the commerce of the United States. 2. Canada, through discrimination or an unreasonable and unequal imposition, burdens U.S. commerce but not the commerce of other countries and disadvantages U.S. commerce compared to the commerce of other countries. Specifically, Canada unreasonably burdens and disadvantages U.S. alcoholic beverages but not alcoholic beverages of other countries. 3. The provinces and territories of Canada generally regulate the distribution and sale of distilled spirits, wine, beer, and other alcoholic beverages (collectively, alcoholic beverages) in their respective jurisdictions. All provinces and territories control the wholesale of alcoholic beverages, and most have a hybrid public/private system for the retail of alcoholic beverages. 4. Beginning in March 2025, all Canadian provinces and territories halted the purchase, distribution, or retailing of U.S. alcoholic beverages. For example, on March 4, 2025, the Liquor Control Board of Ontario (LCBO) ceased purchasing all U.S. products and canceled existing orders where contractually possible; removed all U.S. products from wholesale product catalogues and retail eCommerce sites; and removed all U.S. products from LCBO retail stores and outlets. Similarly, on March 4, 2025, the province of Quebec asked the Société des Alcools du Québec to remove all U.S. products from its shelves and to stop supplying U.S. alcoholic beverages to grocery stores, liquor stores, bars, and restaurants. Only the provinces of Alberta and Saskatchewan subsequently lifted their bans on the purchase, distribution, or retailing of U.S. alcoholic beverages, in June 2025. 5. The United States, U.S. businesses and workers, and U.S. commerce suffer from the Canadian provinces' and territories' unreasonable and unequal impositions and discriminations with respect to U.S. alcoholic beverages. Following the implementation of the bans, U.S. exports of alcoholic beverages to Canada fell precipitously. Comparing the period from March 2025 through February 2026 to the same period in 2024-2025, Canadian imports of U.S. alcoholic beverages decreased by approximately 81 percent (from approximately $718 million to approximately $137 million). 6. The Canadian provinces and territories have not instituted or maintained similar bans or restrictions on any other country since March 2025, thereby benefitting other countries at the expense of the United States. Indeed, exports of alcoholic beverages from other countries to Canada have increased to meet the demand previously filled by U.S. exports. For example, comparing March 2025 through February 2026 to the same period in 2024-2025, Canadian imports of alcoholic beverages from Chile, Japan, Argentina, Ireland, New Zealand, and Australia significantly increased, with increases ranging ( printed page 46640) from approximately 13 percent to approximately 26 percent. Despite a nearly 12 percent decline in total imports of alcoholic beverages into Canada, imports into Canada from countries other than the United States increased by over $170 million from March 2025 through February 2026 compared to the same period in 2024-2025, with imports into Canada from the European Union accounting for over $100 million of this increase. 7. Accordingly, pursuant to section 338, I find as a fact that through the regulation, restriction, or prohibition of U.S. alcoholic beverages, Canada has imposed an unreasonable regulation or limitation on articles wholly or in part the growth or products of the United States and is discriminating in fact against the commerce of the United States in such manner as to place it at a disadvantage compared to the commerce of other countries, by banning the purchase, distribution, or retailing of U.S. alcoholic beverages while not banning or similarly restricting such products from other countries. I also find as a fact that this unequal and unreasonable imposition or discrimination places a burden on the commerce of the United States and places a disadvantage on the commerce of the United States. 8. Further, I find that imposing additional ad valorem duties on certain products of Canada to address the burden or
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