Trump Opens New Chapter in Trade War, Imposes Additional 50% Tariff on Canada
REPUBLIKA.CO.ID, JAKARTA — US President Donald Trump has opened a new chapter in his trade dispute with Canada after signing three proclamations imposing an additional 50 per cent tariff on a number of products from the neighbouring country.
The levy is not yet in force. According to official White House documents, the tariff will begin to apply to goods entered for consumption or withdrawn from warehouse on 19 August 2026 at 00.01 US Eastern time. Trump may still reduce, modify, suspend or revoke the policy before or after its effective date.
The Office of the US Trade Representative (USTR) said the tariffs cover nearly US$20 billion worth of Canadian imports, about 5.2 per cent of total US goods imports from Canada, which reached US$383 billion in 2025. This means the tariffs do not apply to all or most Canadian exports to the US, but rather to certain product groups.
Targeted products include wine, cement, ice hockey equipment, dairy products, furniture, swimming pools, fishing tackle, seeds, apparel, honey and wigs. Meanwhile, the White House exempted energy, potassium fertiliser or potash, fish, critical minerals, and goods already subject to tariffs under Section 232, including certain steel, aluminium, copper, vehicles and other sectoral products. A number of civil aviation products also received exemptions, as reported by several US media outlets on Tuesday (21/7/2026).
The 50 per cent tariff is an additional duty, not necessarily a final rate of 50 per cent. The presidential documents state that the new levy is added on top of existing duties, taxes, fees and other charges, unless specific exemptions apply. As a result, the effective burden on certain products could exceed 50 per cent.
The policy also applies to goods meeting the rules of origin under the United States–Mexico–Canada Agreement (USMCA). Compliance with the USMCA has so far been the main route for Canadian products to obtain preferential tariff access to the US market.
Three Disputes Behind Trump’s Tariffs
Trump issued three separate proclamations using Section 338 of the Tariff Act of 1930. Each proclamation addresses allegations of discriminatory treatment by Canada against three groups of US exports: motor vehicles, alcoholic beverages and dairy products.
In the vehicle dispute, the Trump administration has taken issue with Canadian tariffs on American-made cars. Since 9 April 2025, Canada has imposed a 25 per cent tariff on US vehicles that do not meet USMCA requirements. For vehicles meeting the agreement’s rules, tariffs apply to the value of components not originating from Canada or Mexico, within certain limits.
Canada has also applied tariff quotas to US vehicles. The Trump administration alleges that this mechanism could reduce tariff-free access for automotive companies that relocate production from Canada to the US.