U.S. Announces 50% Tariffs on Multiple Canadian Imports Effective August 19

U.S. President Donald Trump signed multiple proclamations on Monday, announcing an additional 50% tariff on several key imports from Canada starting August 19. The measure applies regardless of whether the goods are originating under the United States-Mexico-Canada Agreement (USMCA).

According to annexes attached to the proclamations and reviewed by Supply Chain Dive, the tariffs cover a wide range of product categories, from primary agricultural products and natural materials to chemicals, textiles, consumer goods, wood products, paper, machinery, and tools.

A fact sheet released by the White House stated that the tariffs apply to all covered goods, regardless of whether they are originating under the USMCA. However, energy, potash, products subject to Section 232 tariffs, and certain other goods such as fish and critical minerals are excluded from the additional tariffs.

Trump imposed the maximum rates under Section 338 of the Tariff Act of 1930, after formally determining that Canada's trade practices in several key sectors are discriminatory against the United States. The determinations are contained in three proclamations targeting imports of alcoholic beverages, dairy products, and motor vehicles from Canada, respectively.

The White House cited examples such as Canada imposing tariffs and quotas on U.S. imported vehicles, while not applying equivalent restrictions to vehicles from other countries. The White House also noted that Canada's quota system forces U.S. automakers to invest in production in Canada rather than the United States. Additionally, Canada maintains a 25% tariff on U.S. motor vehicles that do not qualify for preferential duty-free treatment under the USMCA.

The fact sheet also mentioned that most Canadian provinces and territories have suspended the purchase, distribution, or retail sale of U.S. alcoholic beverages, without imposing similar restrictions on products from other countries. Furthermore, Canada's tariff-rate quota on U.S. cheese is more restrictive than the quota it imposes on imports from the European Union, despite Canada having trade agreements with both the United States and the EU.

In the motor vehicle proclamation, Trump stated: "The United States, U.S. businesses and workers, and U.S. commerce are being harmed by Canada's discriminatory, unreasonable, and inequitable tariff system."

After the Supreme Court struck down his global tariffs imposed under the International Emergency Economic Powers Act, the Trump administration has continued to use trade investigations under different trade authorities to impose tariffs on various industries and countries.

In February of this year, Trump signed a proclamation imposing a 10% surcharge on imports entering the United States under Section 122 of the Trade Act of 1974.

On July 22, the United States plans to begin imposing 25% tariffs on various imports from Brazil, while exempting a wide range of fruits and vegetables such as pineapples, bananas, and avocados, as well as beef and certain seafood. The United States bases these tariffs on Sections 301 and 304 of the Trade Act of 1974.

These new tariffs are also the latest move in a nearly year-long trade war with Canada. Over the past year, the two countries have exchanged various tariff threats and imposed sector-specific tariffs, while theoretically still working to review USMCA provisions—which previously exempted many goods from additional tariffs.

Canadian Prime Minister Mark Carney said Monday that the new tariffs "directly violate" the USMCA, but vowed to intensify discussions on modernizing the agreement and resolving the ongoing trade dispute with the United States.

In a statement, Carney said: "This trade dispute is raising costs for families, especially in the United States. Canada is ready to engage intensively with the United States to resolve outstanding issues for the benefit of citizens in both countries."