On July 20, 2026, President Trump signed three proclamations imposing additional duties on a range of Canadian goods imported into the US under Section 338 of the Tariff Act of 1930. The proclamations impose 50% tariffs on a broad range of Canadian goods across numerous sectors to "offset Canadian discrimination" against US alcohol, motor vehicles, and dairy products.

The new tariffs take effect at 12:01 a.m. EDT on August 19, 2026, and apply to all covered goods, regardless of whether they qualify for preferential duty treatment under the U.S.-Mexico-Canada Agreement (USMCA). According to the White House, the tariffs "will not apply to energy, potash, products subject to tariffs under Section 232 [of the Trade Expansion Act of 1962], and certain other goods, such as fish or critical minerals."

In a fact sheet, the White House describes these additional tariffs as being "in response to Canada's discriminatory treatment of American products," and in effect "offsetting the burden and disadvantage on U.S. commerce from Canada's discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports — cars, alcohol, and dairy." Specific concerns cited in the proclamations include Canadian tariff rate quotas for American autos and dairy products, and the ban of US alcoholic beverages by Canadian provinces and territories.

The announcement comes as the US and Mexico are scheduled on July 21 to begin a third round of bilateral negotiations related to the joint review of the USMCA in Mexico City. The US and Canada have not yet begun formal negotiations.

Section 338 authorizes the President to impose ad valorem duties up to 50% on imports from countries that impose unreasonable charges, regulations, or restrictions on US goods, or otherwise discriminate against US commerce. This is the first time the statute has been used to impose tariffs.

Following the signing of the proclamations, U.S. Trade Representative Jamieson Greer released a statement, stating, "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. Specifically, Canada has taken U.S. alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on U.S. vehicle exports to Canada from companies reshoring to the United States. Today, President Trump took decisive action to hold Canada accountable for its retaliation and discrimination, delivering on his promise to correct trade imbalances and ensure fairness for American workers, farmers, and businesses."

The Presidential Proclamation on alcoholic beverages is available here.

The Presidential Proclamation on dairy is available here.

The Presidential Proclamation on motor vehicles is available here.

A White House Fact Sheet is available here.