Anabelle Colaco
22 Jul 2026, 16:11 GMT+10
WASHINGTON, D.C./OTTAWA: President Donald Trump this week imposed new 50 percent tariffs on nearly US$20 billion worth of Canadian imports, accusing Canada of discriminating against American products and opening a new chapter in the trade dispute between the two countries.
The tariffs, which take effect in 30 days, cover a broad range of goods, including wine, cement, ice hockey equipment, dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs.
Trump invoked Section 338 of the Tariff Act of 1930, allowing a U.S. president to impose punitive tariffs of up to 50 percent on countries deemed to discriminate against American goods. It marks the first known use of the provision since the law was enacted nearly a century ago.
The U.S. Trade Representative's office said the tariffs would apply to nearly $20 billion in Canadian imports, representing about 5.2 percent of the $382 billion in goods the United States imported from Canada in 2025, according to U.S. Census Bureau data.
"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 U.S. industry in national-security sensitive sectors," U.S. Trade Representative Jamieson Greer said in a statement.
Canadian Prime Minister Mark Carney said his government had presented comprehensive proposals to resolve trade disputes with Washington and argued that previous U.S. tariffs violated the U.S.-Mexico-Canada Agreement (USMCA).
"This trade dispute has raised costs for families, particularly in the U.S.," Carney said. "Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens."
The Trump administration said the tariffs were justified by Canada's dairy supply management system, tariffs and quotas on U.S.-made automobiles, and the suspension of sales of American alcoholic beverages by most Canadian provinces following earlier U.S. tariffs.
The White House said Canadian imports of U.S. motor vehicles declined 22 percent and imports of U.S. alcoholic beverages fell 81 percent over the past year.
The new levies will apply regardless of whether products qualify for tariff exemptions under the USMCA, although Trump exempted energy, potash, fish, critical minerals and products already covered by Section 232 tariffs.
Diamond Isinger, a former senior adviser to former Canadian Prime Minister Justin Trudeau on U.S.-Canada relations, said provincial governments, rather than Ottawa, control alcohol sales.
"Unless there are some sort of extraordinary measures invoked here, the premiers of those provinces are the ones who decide whether to restock alcohol," Isinger said.
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