Tuesday, July 21, 2026 - US President Donald Trump has signed executive orders imposing new 50 percent tariffs on a wide range of Canadian goods, accusing Ottawa of discriminating against American products, including alcohol, automobiles and dairy.
The White House said the new tariffs will take effect in 30 days and will apply to products such as wine, hockey sticks and cement. Trump invoked Section 338 of the Tariff Act of 1930 to impose the duties, marking the first known use of the provision. The move comes after several of his previous tariff measures were struck down by the US Supreme Court earlier this year.
The latest tariffs will not apply to energy products, potash or goods already subject to sector-specific tariffs. However, products covered under the United States-Mexico-Canada Agreement (USMCA) will no longer be exempt. Reacting to the decision, Canadian Prime Minister Mark Carney said Ottawa was prepared to intensify negotiations with Washington and had already proposed measures to resolve trade disputes and modernise the USMCA.
Carney described the tariffs as another unilateral trade action by the United States, arguing that they violate the terms of the Canada-United States-Mexico Agreement. He said Canada's response had merely matched previous US measures and reaffirmed the country's commitment to defending its trade interests.
The White House justified the tariffs by accusing Canada of retaliating against US trade measures since 2025. It also criticised Canadian provinces for removing American alcohol from store shelves and cited Canada's dairy policies and restrictions on US vehicle exports.
US Trade Representative Jamieson Greer said the tariffs were intended to hold Canada accountable for what he described as discriminatory trade practices and retaliation against American exports. Trade experts said the use of Section 338 could face legal challenges because the provision has never previously been used to impose tariffs.
Scott Lincicome of the Cato Institute said the law had largely been superseded by more recent trade legislation, while Ryan Majerus, a former US trade official, described the move as legally risky but suggested it was designed to give Washington leverage in ongoing USMCA negotiations. Industry groups also expressed concern that the tariffs could trigger further retaliation.
Chris Swonger, president of the Distilled Spirits Council of the United States, welcomed the administration's recognition of Canada's restrictions on American alcohol but warned that further escalation could hurt businesses already facing financial challenges.
Analysts also questioned the administration's claims regarding Canada's dairy policies, noting that some of the disputed measures stem from Canada's trade agreement with the European Union. They warned that legal disputes over the tariffs could create prolonged uncertainty for businesses on both sides of the border.
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