Trump Imposes Additional 50% Tariffs on About $20 Billion in Canadian Goods

On July 20, 2026, President Trump signed three proclamations under Section 338 of the Tariff Act of 1930 imposing additional 50% tariffs on a range of Canadian goods, from wine and dairy to hockey sticks and cement. The White House said the duties cover roughly $20 billion in annual imports and respond to what it called Canada's discriminatory treatment of U.S. cars, alcohol, and dairy. The tariffs take effect 30 days after signing, around August 19, and apply regardless of whether goods qualify under the USMCA, though energy, potash, fish, critical minerals, and items already covered by Section 232 are exempt.

Section 338, a Depression-era provision rarely invoked in modern trade practice, lets the president raise tariffs to offset foreign discrimination against U.S. commerce without the investigations required under other statutes. Using it to override USMCA preferences escalates a trade dispute with a treaty partner and follows the administration's decision earlier this year not to renew the USMCA in its current form.

Canadian Prime Minister Mark Carney called the tariffs a direct violation of the USMCA and said Canada would intensify negotiations. The measures are scheduled to take effect in mid-August.