The US has postponed the planned 50% additional tariffs on certain Canadian imports, citing ongoing negotiations with Canada over disputed trade practices involving US alcoholic beverages, dairy products, and motor vehicles.
The US has delayed the imposition of 50% additional tariffs on certain Canadian goods by three days as the two countries continue negotiations over longstanding trade disputes.
The tariffs, originally scheduled to take effect on 19 August 2026, will instead enter into force at 12:01 AM ET on 22 August 2026, under the Presidential Proclamation of 18 August 2026.
The financial penalties were established to retaliate against Canada’s perceived unfair trade practices regarding American dairy, motor vehicles, and alcohol.
Background on the tariffs
On 20 July 2026, the US issued three Proclamations (11046, 11047, and 11048) to impose additional ad valorem duties on certain Canadian goods. These duties were intended to offset Canadian trade practices that the US identified as discriminatory against US commerce. Specifically, these practices involved restrictions on the purchase, distribution, and retail of US alcoholic beverages; tariff-rate quota allocations on US cheeses; and Canada’s motor vehicle tariff scheme.
Reason for the suspension
Due to the active status of negotiations between the two nations, the administration determined that a brief suspension of the duties was in the public interest.
Federal agencies, led by US Customs and Border Protection (CBP), are instructed to immediately suspend collection of these additional duties and process refunds for any collections already made, as permitted by applicable law.
Earlier, on 20 July 2026, President Donald Trump announced 50% tariffs on approximately USD 20 billion worth of Canadian imports, marking the first invocation of Section 338 of the Tariff Act of 1930 in nearly a century.
