US Hits Canada With 50 Percent Tariffs

The administration is responding to the retaliatory stance that Canada had retained toward the US:

“At the outset of the president’s trade policy, which he implemented early last year, there were only two countries that retaliated against the United States: the People’s Republic of China and Canada,” an official said. “Canada has retained substantial retaliation against the United States, as the U.S. imposes trade actions to re-industrialize, re-shore, and support its manufacturing. Specifically, Canada has to be held accountable for this continued discrimination,” the official continued (Townhall).

Financial Times: On Monday evening the administration published a list of specific goods that would be subject to the 50 per cent tariff, including milk and dairy products, alcoholic drinks, clothing and furniture…. The Trump administration will base the tariffs on Section 338 of the Tariff Act of 1930, which has never been used to impose duties on trading partners. A senior administration official said the law gave the president the authority to impose duties when a country discriminated against the US “relative to the treatment it gives a third country” (Financial Times).

Fact sheet: (White House).

Trump hits Canada with surprise 50% tariffs — and he didn’t warn Carney during their World Cup talk

By Emily Goodin, NY Post, July 20, 2026:

WASHINGTON — President Trump slapped a mammoth 50% tariff on certain Canadian goods — a move meant to combat what the administration described as the country’s “continuous discrimination” on American products.

The new tax will apply to a range of imports, including wine, hockey sticks, and cement and goes into effect in 30 days, but the administration indicated in a Monday briefing call that it was open for negotiations on the matter.

“Canada has retained substantial retaliation against the United States,” a senior administration official told reporters on a Monday briefing call.

Donald Trump speaking with Mark Carney at the FIFA World Cup 2026 Final match.
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President Trump speaks with Canadian Prime Minister Mark Carney at the World Cup Final on July 19, 2026.
Getty Images
“These are defensive measures by the United States taken to remedy discriminatory actions by Canada,” the official said, vowing the administration would hold America’s northern neighbor “accountable.”

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There will be exemptions for energy and essential goods like fish and critical minerals.

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“This is not a trade war with Canada,” the official insisted, adding the president was trying to right the trade imbalance between the two nations.

The new tax will come as a shock to Canadian Prime Minister Mark Carney — Trump didn’t mention the forthcoming tariffs when the two men chatted during Sunday’s World Cup final.

“Although the president and the prime minister met and they had a one-on-one, it was not a visit to talk about trade and tariffs from our perspective,” the official said.

Canadian Prime Minister Mark Carney, U.S. President Donald Trump, FIFA President Gianni Infantino, and Mexican President Claudia Sheinbaum speak at a FIFA World Cup 2026 match.
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Trump did not mention the tariffs to Carney at the World Cup.
FIFA via Getty Images
There may be more tariffs to come, the Trump administration warned.

Trump has vowed to hold Canada accountable for the wildfire smoke that polluted air across the northeast and down the eastern coast for several days last week.

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“Maybe they should pay us some damages or something, or we should do some tariffs,” Trump told reporters on Sunday.

The president is still examining his options there.

“These are not the so-called wildfire tariffs. The president has asked for options on that, and options are being shared with him,” the official said.

The US goods trade deficit with Canada was $46.4 billion in 2025, according to the Office of the US Trade Representative.

Trump has long seen Canada as a bete noir and publicly mussed about making it America’s 51st state. He had an antagonistic relationship with former Prime Minister Justin Trudeau.

Continued….