U.S. pauses new Canada tariffs for three days amid trade talks

What changed

• A three-day suspension of the additional ad valorem duties imposed in Proclamations 11046 (alcoholic beverages), 11047 (dairy), and 11048 (motor vehicles).
• The effective date in each proclamation is amended to 12:01 a.m. Eastern Time on August 22, 2026.

Who this affects

• Importers and distributors of Canadian alcoholic beverages, U.S. cheese/dairy exporters concerned with Canadian tariff-rate quotas, and motor vehicles/auto parts tied to the prior proclamations.

Why it matters

• Senior executive branch officials report Canada has expressed a commitment to remove the cited discriminatory measures; officials recommended a short suspension in the public interest while negotiations continue.

Next steps and implementation

• Agencies are ordered to take steps, consistent with law, to implement the suspension and immediately begin to suspend collection of the additional duties where required.
• U.S. Customs and Border Protection (CBP), consulting with trade agencies, will determine and publish any necessary HTSUS modifications in the Federal Register.
• If duties were collected that must be refunded, refunds will be handled under applicable law and CBP procedures.

Legal basis

• Action is taken under section 338 of the Tariff Act of 1930 and section 604 of the Trade Act of 1974, as described in the proclamation.