President Donald Trump on Monday ordered retaliatory 50 percent tariffs on a number of Canadian goods due to alleged “discriminatory treatment” by Canada against alcohol, automobile and dairy products.
“Trump signed three proclamations Monday targeting different sets of Canadian imports with the steep tariffs in response to separate areas — motor vehicles, alcohol and dairy — where the U.S. says it has been treated unfairly,” CNBC reported, citing what administration officials had said.
Fact Sheet: President Donald J. Trump Imposes Additional Tariffs on Canada https://t.co/7fJnp2mswO
— Rapid Response 47 (@RapidResponse47) July 20, 2026
“Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States,” US Trade Representative Jamieson Greer reportedly said in a statement.
The tariffs, set to go into effect in 30 days, will cover products such as wine, hockey sticks, and cement.
Recall that the president’s original tariffs were struck down by the Supreme Court earlier this year. This time around, he’s trying a different legal justification for his tariffs — Section 338 of the Tariff Act of 1930.
Section 338 of the Tariff Act of 1930 (19 U.S.C. § 1338) is a long-dormant provision that grants the president broad authority to impose retaliatory tariffs (up to 50 percent ad valorem) on imports from countries found to be discriminating against U.S. commerce.
The law is triggered when the president finds as a fact that a foreign country has imposed an unreasonable charge, exaction, regulation, or limitation on American products that isn’t enforced on similar goods from other countries.
“Section 338 empowers the President to impose tariffs when a country disadvantages U.S. exporters relative to the exports of another country to offset the disadvantage or burden on U.S. commerce,” according to a Trump White House fact-sheet that was published Monday.
According to Al Jazeera, the new tariffs won’t apply to “energy, potash, and [other] goods already impacted by sector-specific tariffs.” They will, however, apply to products covered under the US-Mexico-Canada free trade agreement (USMCA).
“Earlier this month, the Trump administration said it would not renew that trade agreement, known as USMCA, opting instead to cast a shadow over the treaty’s future by triggering a series of annual reviews,” CNBC noted.
Canada did not appear to appreciate the new tariffs. Ontario Premier Doug Ford wrote the following on social media in response to them:
I’ll never stop fighting to protect Ontario. If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar.
— Doug Ford (@fordnation) July 20, 2026
Canadian Prime Minister Mark Carney said that the tariffs are a “direct violation” of the USMCA and added that Canada is “ready to intensify … discussions” to resolve its dispute with Trump.
My statement on the United States administration’s intention to impose new tariffs on Canadian goods: pic.twitter.com/wl8JtbQjyC
— Mark Carney (@MarkJCarney) July 20, 2026
Trump’s tariffs announcement Monday came only days after he threatened to hit Canada with additional tariffs because of pollution from the northern nation’s many wildfires.
“We are holding Canada responsible for the fact that they are not properly maintaining their Forests, and Brush therein, and the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable!” he wrote on Truth Social.
He continued by accusing Canadian officials of not properly maintaining their forests with “forest management and debris removal,” both of which are vital for preventing wildfires.
“This is Willful Negligence, and becoming a yearly occurrence, costing the United States Billions of Dollars, which cost of this pollution must of necessity be added to the TARIFFS Canada is currently paying,” he added.
“We are holding Canada responsible… the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable!” – President Donald J. Trump 🇺🇸 pic.twitter.com/LVsFinBcg1
— The White House (@WhiteHouse) July 17, 2026
The White House maintains that the new tariffs announced Monday had nothing to do with this particular threat.
“One of the senior officials on Monday specified that the newly announced 50% tariffs on Canadian goods are not related to the wildfires — but added that Trump ‘has asked for options on that,'” according to CNBC.
Writers and editors can be contacted at [email protected] with feedback, tips, or corrections.
V. Saxena is a staff writer with a decade of experience as a professional writer, and a lifetime of experience as an avid news junkie. He holds a degree in computer technology from Purdue University. Saxena also contributes to BizPac Review.
Comment
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.