US President Donald Trump signed three proclamations imposing a 50% tariff on a wide range of Canadian goods, world agencies reported in the early hours of July 21.
The move was officially confirmed in a statement by the White House and the Office of the US Trade Representative (USTR).
The trade measures are being taken under Section 338 of the Tariff Act of 1930 — a rarely used legal mechanism that allows the president to impose tariffs of up to 50% without Congressional approval if economic pressure or unequal treatment of American businesses is established.
Which goods are affected by the new tariffs?
The new tariffs will take effect in exactly 30 days — on August 19, 2026 — and will affect nearly $20 billion worth of Canadian imports. The list includes:
- Dairy products (including cheese and cottage cheese)
- Alcoholic beverages and wines
- Industrial goods: cement, plywood, paper, cardboard and plastic products
- Consumer Goods: hockey sticks, sports equipment, clothing, shoes and electronics
Important exceptions: The duties will not apply to critical imports of energy resources, potassium, fish, vital minerals and goods that already fall under other national tariffs.
Reasons for the economic blow
Washington justified the drastic step with Ottawa's continued protectionist policy and the systematic damage to American exports. According to White House data, after Canada introduced 25 percent tariffs on cars from the United States in April 2025, American car imports into the country fell by 22%. Additionally, blockades and boycotts of most Canadian provinces’ tariffs on U.S. alcohol have led to an 81% drop in U.S. liquor sales north of the border.
U.S. Trade Representative Jamieson Greer stressed that the measures are intended to “protect American workers and balance trade.” Such a tough approach comes as Canada remains one of the few countries to have opted for retaliation rather than negotiations under the trilateral USMCA agreement.
Ottawa’s response
New Canadian Prime Minister Mark Carney announced that his government had already provided detailed proposals to modernize the agreement and was ready for intensive negotiations in the remaining 30 days before the tariffs go into effect. Ontario Premier Doug Ford, however, reacted much more sharply, calling on social media for an immediate “dollar-for-dollar, tariff-for-tariff” response. duty“, if Washington does not withdraw its decision.