Trump imposes 50% additional tariff on Canadian products

The President of the United States, Donald Trump (Republican Party), signed this Monday (20.Jul.2026) 3 decrees that impose an additional tariff of 50% on certain products imported from Canada. The charge will go into effect at 12:01 a.m. on August 19, 2026, Washington time.

The measures were adopted based on Section 338 of the Tariff Act of 1930. The US government claims that Canada imposes unequal trade treatment on vehicles, alcoholic beverages and dairy products from the United States. Here’s the complete of the statement (PDF – 1 MB).

The charge will be added to the tariffs already applicable to the products. It will also reach goods that meet the rules of origin of the USMCA (trade agreement between the United States, Mexico and Canada).

Products such as wine, hockey sticks, cement, dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs will be affected. Energy products, potash, fish, critical minerals and items already subject to Section 232 tariffs are among the exceptions.

Section 338 authorizes the U.S. president to impose additional tariffs when he finds that another country imposes unequal restrictions on or discriminates against U.S. commerce relative to that of other nations. The surcharge cannot exceed 50% of the value of the product nor come into force before 30 days of the presidential decree.

CANADA’S RESPONSE

Canadian Prime Minister Mark Carney said the country had presented proposals to resolve trade differences. It also stated that previous US tariffs violated the trade agreement between the 3 countries.

Carney said the dispute has raised costs for families, particularly in the United States, and said Canada is willing to negotiate.

US ARGUMENT

In a publication in X, the USTR (Office of the United States Trade Representative) justified the measure with Canadian restrictions on alcoholic beverages, vehicles and North American cheeses.

All Canadian provinces and territories suspended the purchase, distribution or sale of alcoholic beverages from the United States by March 2025. Alberta and Saskatchewan lifted restrictions in June of that year. According to the USTR, Canada has not applied similar measures to beverages from other countries.

Canadian beverage imports from the United States fell 81% from March 2025 to February 2026, from $718 million to $137 million, compared to the previous 12 months.

The agency also stated that Canada applies tariffs and quotas to North American vehicles that do not cover models imported from other countries. According to Washington, the quotas encourage United States automakers to maintain production in Canadian territory. Canada reduced the limits granted to companies that moved factories to the United States.

From April 2025 to March 2026, Canadian imports of North American vehicles fell about 22%, from $25.9 billion to $20.3 billion.

From April 2025 to February 2026, vehicle imports from Mexico, Japan, South Korea and Germany increased. Growth ranged from 10.1% to 23.6%, according to the US government.

In the case of cheese, Washington claims that Canadian rules prevent retailers from accessing quotas allocated to US products. The same access is allowed to cheeses from the European Union, although Canada maintains trade agreements with both markets.