US imposes 50% tariffs on $20 billion of Canadian imports

US President Donald Trump on Monday imposed new 50% tariffs on nearly $20 billion worth of Canadian imports, accusing Ottawa of discriminating against American-made automobiles, alcohol and dairy products, in a move that opens a fresh front in the ongoing global trade dispute.According to agency reports,the tariffs announced under Section 338 of the Tariff Act of 1930, are scheduled to take effect on August 19. The provision, which allows the US president to impose punitive duties of up to 50% on countries deemed to have discriminated against US goods, is being invoked for the first known time since the law was enacted nearly a century ago.

The United States is imposing a tariff of 50% ‌on a wide range of Canadian products in response to what it called Canada's 'discriminatory treatment' of US cars, alcohol and dairy, according to the White House https://t.co/VsOsRbZKCo

— Reuters (@Reuters) July 20, 2026

According to the Office of the US Trade Representative (USTR), the new duties will apply to nearly $20 billion of Canadian imports, accounting for about 5.2% of the $382 billion worth of goods imported from Canada by the United States in 2025.The tariffs cover a wide range of products, including wine, dairy items, cement, furniture, swimming pools, fishing rods, seeds, clothing, wigs and ice hockey equipment. However, key products such as energy, potash, fish, critical minerals and goods already subject to Section 232 tariffs have been exempted.
US Trade Representative Jamieson Greer said Canada continued to retaliate against US efforts to rebalance trade and protect domestic industries despite ongoing negotiations with trading partners."While the Administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national-security sensitive sectors," Greer said.
Canadian Prime Minister Mark Carney criticised the move, saying Ottawa had submitted comprehensive proposals to resolve bilateral trade disputes and maintained that previous US tariffs violated the US-Mexico-Canada Agreement (USMCA)."This trade dispute has raised costs for families, particularly in the US. Canada stands ready to engage intensively to address outstanding issues with the US to the mutual benefit of our citizens," Carney said.

My statement on the United States administration’s intention to impose new tariffs on Canadian goods: pic.twitter.com/wl8JtbQjyC

— Mark Carney (@MarkJCarney) July 20, 2026

The White House cited Canada's dairy supply management system, tariffs and quotas on US-made vehicles, and restrictions on American alcohol sales as reasons for the new measures. It also claimed Canadian imports of US motor vehicles had fallen by 22% and purchases of American alcoholic beverages by 81% over the past year.The announcement comes amid broader trade tensions between Washington and Ottawa. During a meeting with Carney on the sidelines of the FIFA World Cup final in New Jersey on Sunday, Trump also urged Canada to take stronger action against wildfires that have sent smoke across parts of the United States.
Trade experts noted that Section 338 has never before been used to impose tariffs despite existing for nearly 95 years. John Veroneau, a former US trade official, said while the action may be legally permissible, it runs counter to the principle of applying equal tariffs to all trading partners that has underpinned the global trading system since World War II.The latest tariffs add to growing uncertainty over North American trade relations as Washington continues discussions with Mexico over proposed changes to the USMCA while maintaining pressure on Canada over a range of trade issues.