The US will impose 50% tariffs on approximately USD 20 billion of Canadian goods starting 20 August 2026 under Section 338 of the Tariff Act of 1930, while trade negotiators remain far from agreement.
The US is set to impose 50% tariffs on nearly USD 20 billion of Canadian goods beginning 19 August 2026, according to an announcement made under Section 338 of the Tariff Act of 1930.
The duties would affect approximately 5.2% of the USD 383 billion in goods the US imported from Canada in 2025, targeting wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment.
President Donald Trump invoked the provision, which permits the president to impose punitive tariffs against trading partners deemed to have discriminated against US goods. Economists note this marks an unprecedented application of the 90-year-old statute.
Trade talks deteriorate as sectors brace for impact
Canadian negotiators remain far from a draft agreement despite intensive discussions. Canadian Prime Minister Mark Carney declined to disclose specifics of negotiations on 17 August but indicated plans to speak with Trump before the deadline.
Canada’s Trade Minister Dominic LeBlanc confirmed to an advisory committee on Friday that parties remain distant from resolution. US Trade Representative Jamieson Greer has met with LeBlanc six times in four weeks, pressing demands on Canada’s dairy system and alcohol availability in provincial stores.
Automotive tariffs have emerged as a central disagreement between negotiators, according to industry sources.
Business warnings over competitiveness
Unlike previous Trump tariffs, these duties will apply even to products qualifying for preferential treatment under the US-Mexico-Canada Agreement (USMCA), which has protected Canadian trade from broader tariff exposure.
Earlier, on 20 July 2026, President Trump announced that the US would impose 50% tariffs on approximately USD 20 billion of imports from Canada, marking the first use of Section 338 of the Tariff Act of 1930 in nearly a century.
