·
President
Donald Trump
invoked Section 338 of the
Tariff Act of 1930 to impose an additional 50% tariff on Canada.
·
The
measure aims to counter Canada's
alleged discriminatory treatment of U.S. exports.
·
U.S.
Trade Representative Ambassador Jamieson Greer said Canada continues to retaliate
against U.S. efforts to rebalance trade and protect national-security-sensitive
industries.
·
The
U.S. accused Canada of:
o
Removing
U.S. alcohol products
from Canadian store shelves.
o
Granting
preferential market access
to European Union dairy products.
o
Imposing
a cap on U.S. vehicle exports
from companies that have reshored production to the United States.
·
Ambassador
Greer said the action fulfills President Trump's commitment to correct trade imbalances
and ensure fair treatment for
American workers, farmers, and businesses.
·
The
U.S. released separate Section
338 actions covering:
o
Motor
vehicles
o
Alcohol
o
Dairy
products
·
The
White House also issued a Fact
Sheet explaining the new tariff measures and their rationale.
[ABS News Service/21.07.2026]
On 20 July, 2026, Ambassador Greer issued
a statement after President Trump exercised his authority under Section 338 of the
Tariff Act of 1930 to impose additional 50 percent tariffs on Canada to offset Canada’s
discriminatory treatment of U.S. exports.
“While the Administration continues to secure
fair and reciprocal trade deals with our trading partners, Canada, unlike other
partners and allies, continues to retaliate against the United States for its efforts
to rebalance trade and protect U.S. industry in national-security sensitive sectors,”
said Ambassador Greer. “Specifically, Canada has taken U.S. alcohol products
off Canadian shelves, given better market access to dairy products from the European
Union, and has put a cap on U.S. vehicle exports to Canada from companies reshoring
to the United States. Today, President Trump took decisive action to hold Canada
accountable for its retaliation and discrimination, delivering on his promise to
correct trade imbalances and ensure fairness for American workers, farmers, and
businesses.”
Section
338 action on motor vehicles
Section
338 action on alcohol
Section
338 action on dairy
White
House Fact Sheet
Background:
Section
338 of the Tariff Act of 1930 (19 U.S.C. 1338) empowers the President to, among
other things, impose duties of up to 50 percent on imports of a foreign country
to offset the burden or disadvantage from a foreign country’s unequal
imposition on or discrimination against the commerce of the United States. On July 20, 2026, finding that the public
interest will be served by his actions, President Trump took three separate
Section 338 actions to level the playing field for important American exports
to Canada—motor vehicles, alcoholic beverages, and dairy. To offset Canada’s unreasonable and
discriminatory measures against these products, President Trump is imposing a
50 percent tariff on nearly $20 billion in imports from Canada, which will take
effect in thirty days.