WASHINGTON — The United States has announced new 50% tariffs on a broad range of Canadian imports tied to the automobile, alcoholic beverage and dairy sectors, escalating a trade dispute with one of its largest trading partners as the two countries continue negotiations over their future economic relationship.
President Donald Trump signed three proclamations under Section 338 of the Tariff Act of 1930, with the White House saying the measures are intended to respond to what it described as Canada's discriminatory treatment of U.S. commerce in the three sectors. The additional duties are scheduled to take effect on Aug. 19.
According to the White House, the tariffs apply to a range of Canadian goods, including products associated with the targeted industries, regardless of whether they qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA). Energy products, potash, fish, critical minerals and goods already subject to separate Section 232 tariffs are exempt.
The administration said the action was prompted by Canadian measures affecting U.S. motor vehicles, provincial restrictions on American alcoholic beverages and Canada's dairy trade policies. Treasury Secretary Scott Bessent described the tariffs as "reciprocity," saying they were intended to counter trade practices Washington considers discriminatory toward U.S. exporters.
Canadian Prime Minister Mark Carney said Ottawa would intensify trade negotiations with Washington while criticizing the new tariffs. Carney said the measures represented another unilateral U.S. trade action affecting Canadian exports and reiterated Canada's commitment to pursuing a negotiated solution.
The announcement has also affected broader bilateral relations. Canadian officials canceled plans for a joint U.S.-Canada ceremony marking the opening of the Gordie Howe International Bridge, saying the event was no longer appropriate following the tariff decision. Canada plans to hold its own opening ceremony before the bridge begins operations later this month.
The new tariffs expand a series of trade actions taken by the Trump administration against Canadian goods and come as both countries seek to redefine their trading relationship following the expiration of the previous USMCA framework. Economists and industry groups have warned that higher duties could disrupt cross-border supply chains and increase costs for businesses and consumers, although the full economic impact will depend on the outcome of ongoing negotiations.
