Tariff Wars

The administration is responding to the retaliatory stance that Canada had retained toward the US:

“At the outset of the president’s trade policy, which he implemented early last year, there were only two countries that retaliated against the United States: the People’s Republic of China and Canada,” an official said. “Canada has retained substantial retaliation against the United States, as the U.S. imposes trade actions to re-industrialize, re-shore, and support its manufacturing. Specifically, Canada has to be held accountable for this continued discrimination,” the official continued (Townhall).

Financial Times: On Monday evening the administration published a list of specific goods that would be subject to the 50 per cent tariff, including milk and dairy products, alcoholic drinks, clothing and furniture…. The Trump administration will base the tariffs on Section 338 of the Tariff Act of 1930, which has never been used to impose duties on trading partners. A senior administration official said the law gave the president the authority to impose duties when a country discriminated against the US “relative to the treatment it gives a third country” (Financial Times).

Fact sheet: (White House).

Trump hits Canada with surprise 50% tariffs — and he didn’t warn Carney during their World Cup talk

By Emily Goodin, NY Post, July 20, 2026:

WASHINGTON — President Trump slapped a mammoth 50% tariff on certain Canadian goods — a move meant to combat what the administration described as the country’s “continuous discrimination” on American products.

The new tax will apply to a range of imports, including wine, hockey sticks, and cement and goes into effect in 30 days, but the administration indicated in a Monday briefing call that it was open for negotiations on the matter.

“Canada has retained substantial retaliation against the United States,” a senior administration official told reporters on a Monday briefing call.