WASHINGTON — The Trump administration has announced new 50% tariffs on about $20 billion worth of selected Canadian imports, sharply escalating trade tensions with one of the United States' largest trading partners and invoking a rarely used provision of U.S. trade law to justify the measures.
President Donald Trump signed three proclamations under Section 338 of the Tariff Act of 1930, with the White House and the Office of the U.S. Trade Representative saying the action was intended to counter what the administration described as Canada's discriminatory treatment of U.S. exports, particularly in the automotive, alcohol and dairy sectors. The additional duties are scheduled to take effect on Aug. 19, 30 days after the proclamations were issued.
According to the administration, the tariffs will apply to a range of Canadian products, including goods such as wine, cement, furniture, clothing and hockey equipment. Officials said the measures would apply regardless of whether the products qualify for preferential treatment under the U.S.-Mexico-Canada Agreement (USMCA). Energy products, potash, fish, critical minerals and products already subject to separate Section 232 tariffs are among the exemptions.
U.S. Trade Representative Jamieson Greer said Canada had continued retaliatory measures against U.S. exports and maintained policies that disadvantaged American producers. In a statement, Greer said the administration's action was intended to "hold Canada accountable" and address what Washington characterized as unfair trade practices.
Canadian Prime Minister Mark Carney criticized the decision, saying the new tariffs represented another unilateral U.S. trade action that violated the USMCA. In a statement, Carney said Canada remained prepared to intensify discussions with Washington to resolve the dispute while continuing to support Canadian workers, businesses and farmers.
The move marks the first use of Section 338 in decades and comes as trade relations between the two countries have deteriorated amid broader disagreements over market access and previous rounds of tariffs and countermeasures. Analysts have said the latest action could further complicate North American trade negotiations and increase costs for businesses that rely on cross-border supply chains, although the administration argues the tariffs are necessary to secure reciprocal treatment for U.S. exports.
Canadian officials have not announced new retaliatory measures following the latest U.S. action, but Ottawa said it remains ready to pursue negotiations while defending its interests under existing trade agreements. The tariffs are due to enter into force on Aug. 19 unless modified or withdrawn by the U.S. administration.
