On July 20, the White House announced that the United States will slap an additional 50% tariff on certain Canadian goods, in response to what it calls “discriminatory measures” by Canada in automotive and auto parts trade.
According to reports, the new tariffs take effect on August 19, Eastern Time, targeting about $20 billion worth of Canadian products. The list includes electrical equipment, machinery, wine, hockey sticks, and many other categories.
President Trump is invoking Section 338 of the Tariff Act of 1930, a rarely-used law that allows the president to impose up to 50% tariffs on goods from a country that discriminates against U.S. products. Interestingly, this law has never actually been used to levy tariffs before.
The White House emphasized that even goods covered by the current USMCA trade agreement won’t get a pass. However, some key imports like energy, critical minerals, and fish, as well as products already subject to separate tariffs on autos and metals, will be excluded.
President Donald Trump and Canadian Prime Minister Mark Carney chat before the 2026 FIFA World Cup Final. Photo: IC
U.S. Trade Representative Greer stated, “While this administration continues to reach fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, keeps retaliating against America’s efforts to rebalance trade and protect sensitive industrial sectors for national security.”
In response, Canadian Prime Minister Mark Carney said on July 20 that Canada believes in the benefits of free and fair trade. “No matter the circumstances, Canada will work tirelessly and take all necessary measures to strengthen our domestic capacity and support Canadian workers, farmers, businesses, and families,” he added.
Ontario Premier Doug Ford urged the federal government to hit back, saying, “If these tariffs go through, Canada should respond tariff-for-tariff, dollar-for-dollar.”
Reuters noted that Trump recently blamed Canadian wildfires for affecting U.S. air quality and threatened to “add the cost of pollution cleanup to tariffs on Canadian goods.”
On July 19, during the 2026 World Cup final, Trump discussed the wildfire issue with Carney. After the match, Trump revealed he had asked Carney for compensation face-to-face, saying, “We have a good relationship, but maybe they should pay us some damages, or we should just collect some tariffs.”