Trump orders new 50% tariffs on Canadian goods

President Donald Trump has ordered an additional 50% tariff on a range of Canadian goods, citing Canada’s treatment of U.S. alcohol, automobiles and dairy products.

Trump signed three proclamations on Monday. The tariffs will take effect at 12:01 a.m. ET on August 19 and will be added to other duties and charges already imposed on the affected goods.

Trump invoked Section 338 of the Tariff Act of 1930, which allows the president to impose tariffs of up to 50% against countries that discriminate against U.S. commerce.

One proclamation cited decisions by most Canadian provinces and territories to stop purchasing, distributing or selling American alcoholic beverages beginning in March 2025. Alberta and Saskatchewan lifted their restrictions in June 2025, but bans remain elsewhere.

The White House said Canadian imports of U.S. alcoholic beverages fell 81%, from about $718 million to $137 million, between March 2025 and February 2026 compared to the same period a year earlier. Imports from several other countries increased during that period.

A second proclamation accused Canada of discriminating against U.S. automobile exports through tariffs and limits that do not apply to vehicles from other countries. U.S. vehicle exports to Canada fell 22%, from $25.9 billion to $20.3 billion, between April 2025 and March 2026, according to the proclamation.

The third proclamation cited differences between Canadian import quotas for American and European cheese. Trump said Canadian retailers can access duty-free quotas for European cheese but are excluded from similar quotas covering U.S. cheese.

Carney said the new tariffs affect “a significant number of Canadian goods” and accused the U.S. of violating the Canada-United States-Mexico Agreement, known in the United States as the USMCA.

He said Canada’s retaliatory measures have merely matched earlier U.S. tariffs, including those imposed on the Canadian auto industry.

“Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernise CUSMA,” Carney said. “We stand ready to intensify those discussions in the coming weeks.”

“In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families,” Carney added.