Tariffs apply to Canadian wine, hockey sticks, cement, and different merchandise, sparking fears of escalating commerce tensions.
Revealed On 21 Jul 2026
US President Donald Trump will impose new 50 p.c tariffs on many Canadian items, claiming “discriminatory therapy” by Ottawa towards US alcohol, vehicle and dairy merchandise.
The tariffs, ordered by Trump on Monday, will take impact in 30 days and canopy a spread of things, together with wine, hockey sticks, and cement, in accordance with a White Home reality sheet.
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Trump, who noticed a lot of his tariffs struck down by the Supreme Court earlier this 12 months, is utilizing an untested authorized provision for the brand new duties: Part 338 of the Tariff Act of 1930.
The most recent duties is not going to apply to vitality, potash, and items already impacted by sector-specific tariffs, the White Home stated.
Crucially, nevertheless, they’ll hit merchandise coated underneath the US-Mexico-Canada free trade agreement (USMCA).
Responding to the announcement, Canadian Prime Minister Mark Carney stated that the tariffs have been a “direct violation” of the USMCA, and added that his nation was “prepared to accentuate… discussions” to resolve disputes with the US.
The tariff announcement rapidly raised considerations of escalation amongst some companies.
Whereas Trump has slapped sweeping duties on US buying and selling companions since returning to the presidency final 12 months, the orders usually exempted items coming into his nation underneath the North American free commerce pact.
His newest actions threaten to additional pressure ties with the second-largest US commerce associate and are available simply days after he threatened Canada with elevated tariffs over a wave of wildfire smoke that descended on the US.
The White Home, in asserting the brand new tariffs, stated Canada was one in all solely two nations – together with China – to retaliate towards Trump’s tariffs final 12 months.
It additionally took intention at the truth that most Canadian provinces have stopped shopping for US alcohol, boycotting the merchandise over Trump’s tariff threats and repeated requires annexation of Canada as America’s “51st state”.
“Canada has taken US alcohol merchandise off Canadian cabinets, given higher market entry to dairy merchandise from the European Union, and has put a cap on US car exports to Canada from corporations reshoring to the US,” US Commerce Consultant Jamieson Greer charged in a press release.
The tariff announcement goals to “maintain Canada accountable for its retaliation and discrimination”, he added.
