·
President
Donald Trump signed
three proclamations under Section
338 of the Tariff Act of 1930 imposing an additional 50% tariff
on selected imports from Canada.
·
The action
is aimed at countering Canada's
alleged discriminatory treatment of U.S. exports and restoring reciprocal
trade.
·
The tariffs
cover a wide range of Canadian goods, including wine, dairy products, cement, hockey sticks, and other products.
·
The new
tariffs apply regardless of
whether goods qualify under the USMCA.
·
Exemptions include:
o Energy products
o Potash
o Goods already subject to Section 232 tariffs
o Certain products such as fish and critical minerals
·
The tariffs
will take effect 30 days after
signing.
·
Canada
allegedly imposes tariffs and
quotas on U.S. vehicles while giving better access to other countries.
·
Canadian
policies are said to encourage U.S.
automakers to invest in Canada instead of the United States.
·
Between
April 2025 and March 2026,
U.S. motor vehicle exports
to Canada fell by about 22% (US$5.6 billion).
·
Most Canadian
provinces and territories have removed
U.S. alcoholic beverages from retail shelves, leading to an 81% decline (US$582 million)
in U.S. alcohol exports between March
2025 and February 2026.
·
Canada's
dairy tariff-rate quota (TRQ)
system is described as more restrictive for U.S. cheese than for
cheese imported from the European Union.
·
The U.S.
stated that Canada and China
are the only countries that chose to retaliate against U.S. tariffs rather than
negotiate new trade arrangements.
·
The Trump
administration says the tariffs will offset
disadvantages faced by U.S. exporters, protect American workers,
farmers, and manufacturers, and strengthen national security.
·
The administration
reiterated that it does not
support renewing the current USMCA in its existing form, arguing
it is not sufficiently beneficial to the United States.
·
It highlighted
previous Section 232 tariffs
on products such as steel,
aluminum, copper, automobiles, timber, lumber, and pharmaceuticals
as part of its broader "America
First" trade policy.
·
The White
House also claimed that U.S. tariff policies have helped expand manufacturing, attract
investment, and conclude 18
trade deals that improve market access for U.S. exports.
[ABS News Service/21.07.2026]
DEFENDING
AMERICAN WORKERS AND ENSURING FAIR TRADE: Today (20.07.2026), President Donald J. Trump signed three Proclamations
pursuant to Section 338 of the Tariff Act of 1930 to impose additional 50% tariffs
on certain goods of Canada in response to Canada’s discriminatory treatment of American
products. By doing so, President Trump is offsetting the burden and disadvantage
on U.S. commerce from Canada’s discriminatory treatment of U.S. commerce and is
leveling the playing field for crucial American exports—cars,
alcohol, and dairy.
·
Each Section
338 proclamation imposes a 50% tariff on a different set of Canadian imports, covering
products ranging from wine to hockey sticks to cement.
·
These Section
338 tariffs apply to all covered goods regardless of whether a good originates under
the U.S.-Mexico-Canada Agreement (USMCA).
·
These Section
338 tariffs will not apply to energy, potash, products subject to tariffs under
Section 232, and certain other goods, such as fish or critical minerals.
·
The tariffs
will take effect 30 days after signing and are designed to offset the burden and
disadvantage on U.S. commerce from Canada’s discrimination.
SECURING FAIR
TREATMENT FOR AMERICAN EXPORTS: President
Trump is taking action to hold Canada accountable for its continued discrimination
against and unreasonable and unequal treatment of U.S. commerce that has burdened
and disadvantaged hardworking Americans.
·
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.
·
Canada imposes
certain tariffs and quotas on cars imported to Canada from the U.S., but not on
imports from other countries. Canada also
administers these quotas in a way that compels U.S. auto companies to invest in
production in Canada instead of the United States.
o
From April
2025 through March 2026, Canadian imports of U.S. motor vehicles decreased by approximately
22%, or $5.6 billion, compared to the same period in 2024-2025. Exports of motor
vehicles from other countries to Canada have increased to meet the demand previously
filled by U.S. exports.
·
All but two
Canadian provinces and territories have halted the purchase, distribution, or retailing
of U.S. alcoholic beverages, and have not imposed similar restrictions on other
countries.
o
From March
2025 through February 2026, Canadian imports of U.S. alcoholic beverages decreased
by about 81%, or $582 million, compared to the same period in 2024-2025.
·
As part of
its complicated and protectionist dairy system, Canada established tariff-rate quotas
on U.S. cheese that are much more restrictive than the tariff-rate quotas imposed
on similar imports of cheese into Canada from the EU, despite Canada having trade
agreements with both the U.S. and the EU.
·
Over the past
year and a half, only two countries have chosen to retaliate against President Trump’s
tariffs rather than negotiate a deal with the United States: the
People’s Republic of China and Canada.
·
The Section
338 tariffs imposed today make America wealthier and stronger, offsetting the burden
and disadvantage on U.S. commerce from Canada’s discriminatory treatment of U.S.
commerce.
KEEPING AMERICA
FIRST: President Trump is delivering on his
promise to secure better outcomes for American workers, farmers, and businesses
by using tariffs to restore reciprocity to trade and strengthen our national security.
·
President
Trump’s America First Trade Policy was created to benefit American workers and families.
It has dramatically expanded global market access for U.S. exports, strengthened
workers’ incomes, reshored and supported American jobs, and reduced the trade deficit.
·
The United
States, under President Trump’s leadership, did not agree to renew the United States-Mexico-Canada
Agreement (USMCA) in its current form, because the deal is not sufficiently beneficial
for the United States.
·
President
Trump has taken actions under Section 232 to protect and strengthen U.S. manufacturing
critical for our national and economic security, including imposing tariffs on key
goods such as steel, aluminum, copper, trucks and automobiles,
timber, lumber, and pharmaceuticals.
·
In May 2026,
U.S. manufacturing grew at its fastest rate in four years—nearly tripling expectations,
and in June 2026, U.S. manufacturing expanded for its sixth straight month.
·
Through negotiations
with foreign trading partners and the strategic use of tariffs, President Trump
has secured trillions in private and foreign investment to bring American jobs and
manufacturing back to the United States while diversifying global supply chains
and reducing dependence on adversarial nations.
·
President
Trump’s tariffs have resulted in 18 deals opening new markets for U.S. exports and
bringing reciprocity back to America’s trade relations. Yet Canada has elected to
discriminate against the United States rather than address Canadian trade barriers.