On July 20 local time, the White House announced that the United States would impose an additional 50% tariff on a portion of Canadian goods in response to “discriminatory measures taken by Canada against the United States in the trade of automobiles and automotive parts.”
According to CNN, the new tariffs will take effect on August 19, Eastern Time in the United States. They apply to Canadian goods worth approximately $20 billion, including various categories of products such as electrical equipment, machinery, wine, and hockey sticks.
U.S. President Trump invoked Section 338 of the Tariff Act of 1930, which allows the president to impose tariffs of up to 50% on goods from other countries when those goods discriminate against American goods. However, this law has never been used in practice to impose tariffs since its enactment.
The White House emphasized that once the new tariffs take effect, goods covered by the existing US-Mexico-Canada Agreement will not be exempted. However, certain key imports such as energy products, critical minerals, and fish will be excluded. Additionally, products in industries like automobiles and metals, which are already subject to separate tariffs, will also be exempted.
Before the 2026 FIFA World Cup finals in the US, Canada, and Mexico, U.S. President Trump spoke with Canadian Prime Minister Trudeau. IC photo
American Trade Representative Gary Grile announced in a statement: “Although this government continues to reach fair and reciprocal trade agreements with our trading partners, Canada and other partners and allies differ from others. They continue to retaliate against the United States, preventing America from making efforts to rebalance trade and protect sensitive industries in the realm of national security.”
Regarding this move by the United States, Canadian Prime Minister Justin Trudeau responded on the 20th that Canada believes in the benefits of free and fair trade. “Under any circumstances, Canada will make unremitting efforts to take all necessary measures to strengthen its domestic capabilities and support Canadian workers, farmers, businesses, and families.”
Canadian Premier of Ontario Ford urged the government to take countermeasures. He said, "If these tariffs are implemented, Canada should respond with tariffs against tariffs, and dollars against dollars."
Reuters reported that Trump recently accused Canadian wildfires of affecting US air quality, and threatened to add the cost of dealing with pollution to the tariffs imposed on Canadian goods.
On July 19 local time, during the 2026 U.S.-Mexico-Guatemala World Cup finals, Trump communicated with Carney regarding the wildfires. After the game, Trump revealed that he had directly sought compensation from Carney. Although he had a 'good relationship' with Carney, 'maybe they should pay us some compensation, or maybe we should impose some tariffs.'
