The three proclamations, signed Monday, cover about $20 billion in Canadian imports and take effect August 19
Chip Somodevilla / Getty Images
President Donald Trump signed three proclamations Monday imposing 50% tariffs on certain Canadian goods, citing Canada's discriminatory treatment of American motor vehicles, alcoholic beverages, and dairy products. The tariffs take effect August 19 and cover roughly $20 billion in Canadian imports.
Each proclamation targets a separate sector and invokes Section 338 of the Tariff Act of 1930, an obscure statutory authority empowering the president to levy duties as high as 50% against nations whose policies are found to discriminate against American commerce. The tariffs apply to all covered goods regardless of whether they qualify under the United States-Mexico-Canada Agreement, the White House said.
On motor vehicles, the White House said Canadian imports of U.S. cars fell approximately 22%, or $5.6 billion, from April 2025 through March 2026 compared to the same period a year earlier, after Canada imposed a 25% tariff on U.S.-made vehicles while leaving vehicles from other countries untaxed. On alcohol, all but two Canadian provinces and territories halted purchasing and retailing of U.S. alcoholic beverages beginning in March 2025, causing Canadian imports of U.S. alcohol to fall roughly 81% — about $582 million — over the following year. On dairy, the White House said Canada grants European Union retailers access to duty-free cheese import quotas that it denies to U.S. retailers under equivalent trade agreement commitments.
Administration officials said the affected goods span a wide array of products, citing wine, hockey sticks, and cement as examples. Energy, potash, fish, critical minerals, and goods already subject to separate Section 232 tariffs are excluded.
U.S. Trade Representative Jamieson Greer said in a statement that 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."
Canadian Prime Minister Mark Carney said his government believes in the "benefits of free and fair trade" and that Canada "stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens," according to the Associated Press. Ontario Premier Doug Ford $F called for direct retaliation, posting on social media that if the tariffs move forward Canada "should respond tariff for tariff, dollar for dollar," according to CNBC.
Candace Laing, CEO of the Canadian Chamber of Commerce, described the measures as "regrettable" while pressing Washington and Ottawa to treat the period before the August 19 start date as an opportunity "to make meaningful progress in advancing formal talks," according to the AP.
The White House pointed out that Canada and China stand alone among U.S. trading partners in having responded to American tariffs with counter-measures instead of pursuing a negotiated resolution.
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