US President Donald Trump has announced 50% tariffs on a wide range of Canadian imports, citing what the administration calls discriminatory treatment of American products.
The tariffs, imposed under a rarely used provision of the 1930 Tariff Act, will apply to nearly $20 billion worth of imports from Canada.
Canada has said it remains open to negotiations, while warning that previous US tariffs violated the North American trade agreement.
US President Donald Trump on Monday announced 50% tariffs on a broad range of imports from Canada, opening a fresh chapter in the trade dispute between the two countries.
The Trump administration said the move was aimed at responding to Canada's alleged discriminatory treatment of American-made products, including automobiles, alcohol and dairy goods. The new tariffs are scheduled to take effect in 30 days.
4 July 2026
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Tariffs to Cover Nearly $20 Billion of Imports
According to reports, the tariffs have been imposed under Section 338 of the Tariff Act of 1930, a provision that allows the US president to levy punitive tariffs of up to 50% on countries considered to have discriminated against American goods. This is believed to be the first time the provision has been used since the law was enacted.
The duties will apply to a wide range of products, including wine, cement, dairy products, furniture, clothing, fishing rods, swimming pools, seeds and ice hockey equipment.
The Office of the US Trade Representative said the tariffs would cover nearly $20 billion worth of Canadian imports, representing about 5.2% of the $382 billion in goods imported by the US from Canada in 2025.
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US Cites Trade Barriers, Canada Seeks Dialogue
US Trade Representative Jamieson Greer said Canada had continued to retaliate against US efforts to rebalance trade and protect domestic industries, despite Washington pursuing what it described as fair and reciprocal trade agreements with other countries.
The White House also pointed to Canada's dairy supply management system, tariffs and quotas on certain US-made vehicles, and restrictions on the sale of American alcoholic beverages in several Canadian provinces as reasons for the latest action.
Canadian Prime Minister Mark Carney said Ottawa had already submitted proposals to resolve the trade dispute and maintained that previous US tariffs violated the US-Mexico-Canada Agreement (USMCA). He added that Canada remained ready to engage with Washington to resolve outstanding issues.
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Rare Trade Law Revived After Nearly a Century
Reuters reported that Section 338 of the Tariff Act of 1930 has never previously been used by a US president, although earlier administrations had considered invoking it.
Trade experts told the news agency that the law was originally intended to discourage discriminatory tariff practices and promote equal treatment of trading partners, making its use in the current dispute particularly significant.
The new tariffs are set to come into force on August 19 and will apply even to goods that would otherwise qualify for tariff benefits under the USMCA. However, products such as energy, potash, fish, critical minerals and goods already covered under separate Section 232 tariffs have been exempted.
