The United States will impose a 50% tariff on a variety of Canadian goods due to alleged trade discrimination against U.S. products, according to senior officials in the Trump administration. President Donald Trump signed three proclamations on July 20, 2026, targeting imports from Canada in sectors such as motor vehicles, alcohol, and dairy, where the U.S. claims unfair treatment.
The tariffs, authorized under Section 338 of the Tariff Act of 1930, will take effect 30 days after the proclamations are signed. The tariffs will apply to a range of products, including wine, hockey sticks, and cement, regardless of existing trade agreements between the U.S. and Canada.
Ontario Premier Doug Ford stated that Canada should respond in kind if the U.S. tariffs are implemented. The Canadian Embassy in Washington did not immediately comment on the new tariffs.
The relationship between the U.S. and Canada has been strained due to Trump's tariff policies and criticism of the trilateral trade agreement involving Mexico. The U.S. and Canada have previously engaged in trade disputes, with the U.S. imposing heavy tariffs on Canadian goods and Canada retaliating.
Earlier in July, the Trump administration announced it would not renew the USMCA trade agreement, initiating a series of annual reviews instead. Trump has also raised concerns about the impact of wildfires in Canada on U.S. air quality, although officials clarified that the new tariffs are unrelated to the wildfire situation. Section 338 allows the president to impose tariffs of up to 50% on goods from countries found to be discriminating against U.S. interests, a power that has not been used in decades.