Trump Opens New Chapter in Trade War, Imposes Additional 50% Tariff on Canada
US President Donald Trump has opened a new chapter in the trade dispute with Canada after signing three proclamations that impose an additional 50 percent tariff on a range of Canadian products. The levies are not yet in force. According to official White House documents, the tariffs will apply to goods entered for consumption or withdrawn from warehouse on 19 August 2026, at 12:01 a.m. Eastern Time. Trump retains the authority to reduce, modify, suspend, or revoke the policy before or after the implementation date. The Office of the United States Trade Representative (USTR) stated that the tariffs cover nearly 20 billion US dollars’ worth of Canadian imports, representing approximately 5.2 percent of total US goods imports from Canada, which reached 383 billion US dollars in 2025. This means the tariffs do not apply to all or the majority of Canadian exports to the US, but rather to specific product groups. Targeted products include wine, cement, ice hockey equipment, dairy products, furniture, swimming pools, fishing tackle, seeds, clothing, honey, and wigs. The White House has exempted energy, potash, fish, critical minerals, and goods already subject to Section 232 tariffs, including certain steel, aluminium, copper, vehicle, and other sectoral products. Some civil aviation goods are also excluded, according to US media reports on Tuesday (21/7/2026). The 50 percent tariff is an additional duty, not necessarily a final tariff of 50 percent. The presidential documents state that the new levy is added on top of existing duties, taxes, fees, and other charges, unless specifically exempted, meaning the effective burden on certain products could exceed 50 percent. The policy also applies to goods that meet the rules of origin under the United States–Mexico–Canada Agreement (USMCA), which has traditionally been the main channel for Canadian products to access preferential tariff rates in the US market. Trump issued three separate proclamations under Section 338 of the Tariff Act of 1930, each addressing alleged discriminatory treatment by Canada against three groups of US exports: motor vehicles, alcoholic beverages, and dairy products. In the vehicle dispute, the Trump administration is challenging Canadian tariffs on US-made cars. Since 9 April 2025, Canada has imposed a 25 percent tariff on US vehicles that do not comply with USMCA rules, while for compliant vehicles, the tariff applies to the value of non-Canadian or non-Mexican components, subject to certain limits. Canada also applies a tariff-rate quota on US vehicles, a mechanism the Trump administration argues could reduce duty-free access for automotive companies that relocate production from Canada to the US.