U.S. imposes 50% extra tariffs on Canadian goods

2026-07-21

Additional tariffs announced

The U.S. administration said on the 20th that it would impose a new 50% additional tariff on Canadian goods. It said Canada was blocking imports of U.S.-made automobiles, liquor and dairy products, and positioned the move as a countermeasure.

Effective Aug. 19

U.S. President Donald Trump on the same day signed a document ordering the tariffs to take effect. The measure will take effect at 12:01 a.m. EDT on Aug. 19, or 1:01 p.m. Japan time.

More than 500 items covered

The measure is based on Section 338 of the Tariff Act of 1930, which allows tariffs of up to 50% against discriminatory treatment by foreign countries. It covers more than 500 items and extends beyond automobiles, liquor and dairy products to a broad range of goods.

USMCA exemption does not apply

The U.S. currently exempts most imports from Canada from tariffs under the United States-Mexico-Canada Agreement (USMCA). However, the new 50% additional tariff will not be covered by that exemption. The United States and Canada are advancing talks over a review of USMCA, but negotiations appear to be difficult. The new tariffs are also seen as intended to increase pressure on Canada.

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