WASHINGTON, United States: US President Donald Trump imposed additional 50% tariffs on Canadian goods on July 20, escalating a dispute over automobiles, alcohol and dairy across North America, the White House said.
Trump signed three proclamations invoking Section 338 of the Tariff Act of 1930. The duties will take effect at 12:01 am EDT on August 19, or 9:01 am PKT, leaving 30 days for negotiations, according to the White House.
The tariffs cover products ranging from wine and hockey sticks to cement. They apply regardless of whether goods qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
Energy products, potash, goods already covered by Section 232 tariffs and certain fish and critical minerals remain exempt, the White House said.
For automobiles, Trump cited Canada’s 25% counter-tariff introduced in April 2025 on non-USMCA-compliant US vehicles and on some content in compliant vehicles.
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The White House said Canadian imports of US motor vehicles fell 22%, or $5.6 billion, during the following 12 months.
The administration said all but two Canadian provinces and territories maintained restrictions on American alcoholic beverages.
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It also argued that Canadian cheese quotas provided European exporters with better access than US producers received.
Canadian Prime Minister Mark Carney said Ottawa was prepared for intensive negotiations. He warned that the trade dispute had raised costs for families, particularly in the United States, according to the Associated Press.
The United States declined to renew the USMCA in its current form during the July 1 review. However, the agreement remains in force while negotiations continue or until its termination, the US Trade Representative said.
