Motor Vehicle Trade Reciprocity Act of 2026

Section 1. Short Title. This Act may be cited as the 'Motor Vehicle Trade Reciprocity Act of 2026'. Section 2. Findings. Congress finds that Canadian trade practices in the motor vehicle sector, including subsidies, local content requirements, and non-tariff barriers, discriminate against U.S. commerce and harm U.S. manufacturers and workers. Congress further finds that such discrimination warrants a measured, time-limited response to restore reciprocity. Section 3. Authority to Impose Additional Duties. (a) The President is authorized, upon a determination by the United States Trade Representative (USTR) that Canada has engaged in discriminatory practices against U.S. motor vehicle commerce, to impose additional duties of up to 25 percent ad valorem on Canadian motor vehicles imported into the United States. (b) Such duties shall be imposed only after a 90-day notice-and-comment period, including a public hearing, and shall be based on findings published in the Federal Register. (c) The duties shall apply only to motor vehicles originating in Canada and shall not exceed the value of the discrimination found. Section 4. Duration and Sunset. The authority under Section 3 shall expire five years after the date of enactment, unless renewed by Congress through a joint resolution. Any duties imposed shall terminate within 180 days after the President certifies to Congress that Canada has eliminated the discriminatory practices. Section 5. Oversight. The USTR shall submit an annual report to the Committees on Finance of the Senate and Ways and Means of the House detailing the duties imposed, their economic impact, and progress toward resolving the discrimination. The Government Accountability Office shall conduct an independent review every two years. Section 6. Funding. The duties collected under this Act shall be deposited into the General Fund of the Treasury. Up to $10 million per fiscal year from the duties collected is authorized to be appropriated to the USTR for administration and enforcement. Section 7. Judicial Review. Any person aggrieved by the imposition of duties under this Act may challenge the determination in the U.S. Court of International Trade within 60 days of the Federal Register notice. The court shall review the determination for whether it is arbitrary, capricious, or an abuse of discretion. Section 8. Severability. If any provision of this Act is held invalid, the remainder shall not be affected.