Trump narrows scope of Canada auto duties in new proclamation

President Donald J. Trump has signed Proclamation 11065, dated September 8, 2026, modifying the scope of Canadian products subject to the 50 percent additional ad valorem duty imposed to offset Canada’s motor vehicle tariff discrimination against U.S. commerce. The proclamation was published in the Federal Register (Vol. 91, No. 176) on Monday, September 14, 2026, as a Presidential Document, and takes effect for goods entered for consumption on or after 12:01 a.m. eastern time on September 15, 2026.

The action refines the duties first imposed by Proclamation 11048 of July 20, 2026, which found that Canada’s motor vehicle tariff scheme discriminates in fact against U.S. commerce, placing it at a disadvantage compared to the commerce of other countries. That proclamation, issued under section 338 of the Tariff Act of 1930 (19 U.S.C. 1338), imposed additional ad valorem duties effective August 19, 2026.

A suspension that lapsed

The duties were briefly suspended by Proclamation 11056 of August 18, 2026, which delayed their effective date for three days after Canada expressed a commitment to remove the discrimination. According to the new proclamation, Canada reneged on that commitment on August 21, 2026, ceasing good-faith negotiations, and the three-day suspension lapsed at 12:01 a.m. eastern time on August 22, 2026, when the duties became effective.

Senior executive branch officials advised the President that, although the duties offset the burden on U.S. commerce, modifying the scope of products subject to them would still offset that burden and better serve the public interest. The President determined that the public interest requires the modification.

What changes

Under the new proclamation, the scope of products subject to the 50 percent additional ad valorem duty is adjusted in two directions:

• Products of Canada set forth in Annex I, Part A remain subject to the 50 percent additional ad valorem duty imposed pursuant to Proclamation 11048.
• Products of Canada set forth in Annex I, Part B are no longer subject to that 50 percent additional ad valorem duty.

The duties apply in addition to any duties imposed under section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862). The Harmonized Tariff Schedule of the United States (HTSUS) is modified as provided in Annex II, effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on September 15, 2026, and the modifications remain in effect unless expressly suspended, revoked, supplemented, amended, or terminated.

Implementation

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 rules, regulations, guidance, and determinations necessary to implement the proclamation. The Commissioner, in consultation with the Chairman of the United States International Trade Commission, will determine whether any further HTSUS modifications are needed and may make technical or ministerial corrections through notice in the Federal Register.

The proclamation supersedes any inconsistent provisions of previous proclamations and Executive Orders, and any invalid provision will not affect the remainder of the action.

For importers and the auto and auto-parts trade between the United States and Canada, the change means that some Canadian products will now clear U.S. borders without the 50 percent surcharge while others remain subject to it, effective September 15, 2026. Companies should verify whether their goods fall under Annex I, Part A or Part B to determine their duty exposure.

Source: Federal Register, Vol. 91, No. 176, September 14, 2026, Presidential Documents, p. 58339 (official reference: FR Doc. 2026-18839).