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

( 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 provi…