Reciprocal Dairy Trade Enforcement Act of 2026

A BILL to authorize the President to impose additional duties on Canadian goods in response to discriminatory dairy trade practices, and for other purposes. SECTION 1. SHORT TITLE. This Act may be cited as the "Reciprocal Dairy Trade Enforcement Act of 2026." SECTION 2. FINDINGS AND PURPOSE. Congress finds that Canada maintains tariff-rate quotas, supply management systems, and other barriers that discriminate against U.S. dairy exports. The purpose of this Act is to provide a legislative framework for proportionate retaliatory duties that respect the constitutional authority of Congress, protect U.S. dairy producers, and preserve the integrity of multilateral trade agreements. SECTION 3. DETERMINATION OF DISCRIMINATION. The United States Trade Representative (USTR) shall, within 120 days of enactment, conduct an investigation and issue a public report determining whether Canadian dairy trade practices are discriminatory, unreasonable, or burden U.S. commerce. The report shall include the estimated annual value of lost U.S. dairy exports. SECTION 4. AUTHORITY TO IMPOSE DUTIES. (a) If the USTR report finds discrimination, the President may, by proclamation, impose additional duties on Canadian goods up to 100% of the value of the harm identified, but not exceeding 25% ad valorem on any single product. (b) Duties imposed under this section shall be collected by U.S. Customs and Border Protection and deposited into the Dairy Trade Adjustment Fund established under Section 5. (c) No duties may be imposed under this section without the prior approval of a joint resolution of Congress, which must be passed within 60 days of the President's request. SECTION 5. DAIRY TRADE ADJUSTMENT FUND. (a) There is established in the Treasury a Dairy Trade Adjustment Fund. Funds collected under Section 4 shall be used solely for: (1) compensation to U.S. dairy farmers affected by Canadian barriers; (2) market development programs for U.S. dairy exports; and (3) administrative costs of the USTR and CBP. (b) The fund shall be subject to annual audit by the Government Accountability Office. SECTION 6. SUNSET. This Act and any duties imposed under it shall expire 5 years after the date of enactment, unless renewed by Congress. SECTION 7. JUDICIAL REVIEW. Any person adversely affected by a duty imposed under this Act may seek review in the U.S. Court of International Trade within 60 days of the proclamation. The court shall review the determination for compliance with this Act and the Constitution. The standard of review shall be arbitrary and capricious for factual findings, and de novo for legal questions. SECTION 8. RULE OF CONSTRUCTION. Nothing in this Act shall be construed to abrogate any U.S. obligations under the USMCA or the WTO. The President shall take all necessary steps to ensure compliance with those agreements, including by seeking a WTO dispute resolution ruling before imposing duties.