Executive summary

This edition of Trade Talking Points provides updates on trade policy developments, including United States (US) President Trump's signing five Proclamations imposing import bans on certain Canadian goods and modifying the scope of the Section 338 tariffs, the European Commission's presenting the European Union (EU)-India Free Trade Agreement to the Council of the EU, and the United Kingdom's (UK) confirming India's graduation date from the Developing Countries Trade Scheme.

Latest US trade policy announcements

President Trump signs five Proclamations imposing import bans on certain Canadian goods and modifies the scope of the Section 338 tariffs.

On 8 September 2026, President Trump signed five Proclamations pursuant to Section 338 of the Tariff Act of 1930 to ban the import of certain products from Canada and modify the scope of the tariffs on certain Canadian products announced on 20 July 2026. This followed the Canadian's government's 7 September 2026 release of two orders-in-council implementing counter-tariffs in response to United States (US) tariffs imposed on Canadian goods (see Global Tax Alert, Canada introduces legislation to implement counter-tariffs, dated 16 September 2026).

Key outcomes of the Proclamations include:

• The US has imposed import bans on certain Canadian alcoholic beverages and other products of Canadian origin that were subject to the 50% tariffs imposed under Section 338 in Proclamation 11046.
• The US has imposed import bans on certain Canadian dairy and other products of Canadian origin that were subject to the 50% tariffs imposed under Section 338 in Proclamation 11047.
• The US has removed certain products, including rock salt and cement, from the scope of the Section 338 tariffs and has updated the scope to include new products, including all-terrain vehicles and additional dairy products.

The updated Section 338 tariffs apply to all covered goods regardless of whether the goods originate under the US-Mexico-Canada Agreement (USMCA) and apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962.

The import bans will take effect on 29 September 2026, and the product additions and removals took effect on 15 September 2026.

See EY Global Tax Alert, US bans certain Canadian alcoholic beverages, dairy and motor vehicle products under Section 338; modifies scope of existing 50% duties, dated 9 September 2026.

Latest EU trade policy announcements

European Commission presents the EU-India FTA to the Council of the EU

On 11 September 2026, the European Commission presented its proposals to the Council of the EU for the signature and conclusion of the EU-India Free Trade Agreement (FTA).

If the Council of the EU authorizes the proposals , the FTA will become the largest trade agreement ever concluded by the EU and India.

Key terms of the agreement include:

• The EU will eliminate tariffs on over 90% of tariff lines, representing 91% in terms of value.
• India will eliminate tariffs on 86% of tariff lines, representing 93% in terms of value.
• Both parties will partially liberalize a significant additional number of tariff lines, bringing the overall coverage of trade liberalization to 96.6% for India and 99.1% for the EU.

After the Council of the EU approves the EU-India FTA, the European Parliament must also provide its consent for the FTA to conclude and enter into force. India will also undertake its own internal ratification procedures.

European Commission presents the EU-Ecuador SIFA to the Council of the EU

On 11 September 2026, the European Commission presented its proposal for the EU-Ecuador Sustainable Investment Facilitation Agreement (SIFA) to the Council of the EU for its signature and conclusion.

The SIFA will encourage EU investment in Ecuador by:

• Simplifying investment authorization procedures
• Improving dialogue between investors and the administration
• Increasing cooperation between the EU and Ecuador by further enhancing investment relations

After the Council of the European Union approves, the SIFA will be submitted to the European Parliament for its consent. Once the consent process has been completed in both territories and the agreement has been formally concluded, the SIFA will enter into force.

European Commission launches consultation on review of International Procurement Instrument

On 10 September 2026, the European Commission launched a consultation seeking feedback from stakeholders on the scope, operation and efficiency of the International Procurement Instrument (IPI). The IPI is designed to promote market liberalization and ensure market fairness for EU businesses in non-EU public procurement markets. The IPI empowers the European Commission to initiate investigations against alleged restrictions in non-EU procurement markets and consult with the countries concerned to encourage improved market access.

The consultation will remain open until 27 November 2026.

Latest UK trade policy announcements

UK confirms India graduation date from the Developing Countries Trading Scheme

On 4 September 2026, the UK Department for Business, Innovation, Science and Trade announced that India will graduate from the Developing Countries Trade Scheme (DCTS), following the entry into force of the UK-India FTA, plus a two-year transition period.

The UK-India FTA entered into force on 15 July 2026. As a result, India has entered the two-year transition period and should graduate from the DCTS on 15 July 2028.

During the transition period, UK businesses may continue to claim preference on Indian goods under the DCTS or use the preferential trading arrangement available under the UK-India FTA.

Furthermore, once India graduates from the DCTS, eligible DCTS countries within the Asia Regional Cumulation Group will be able to continue using Indian-originating materials when exporting to the UK under DCTS rules of origin, provided that the sourced inputs are duty-free and quota-free under the UK-India FTA.