Bota Posted on 2026-07-21 10:47:00

50% additional tariffs on Canada - Trump signs decrees: It is discriminating against American trade

From Dorian Koça

50% additional tariffs on Canada - Trump signs decrees: It is discriminating

US President Donald Trump signed three executive orders to impose an additional 50% tariff on some Canadian goods, saying Canada was discriminating against US trade.

Additional duties of 50% ad valorem on certain dairy products, alcoholic beverages, vehicles and related goods will take effect at 12:01 a.m. Eastern Time (04:01 GMT) on August 19, according to documents posted on the White House website. Energy products, potash, fish and critical minerals will be exempt from the tariffs.

In a statement regarding vehicles and related products, Trump said Canada has maintained a 25 percent tariff on imports of U.S. vehicles that do not qualify for preferential duty-free treatment under the United States-Mexico-Canada Agreement (USMCA) since April 9, 2025. Canada also maintains a tariff quota on U.S. vehicles that qualify for preferential duty-free treatment under the USMCA.

After the implementation of the tariff measures, Canadian imports of U.S. vehicles fell by about 22 percent, from approximately $25.9 billion between April 2024 and March 2025 to about $20.3 billion during the same period in 2025-2026, according to the announcement.

Canada applies the tariff scheme only to vehicles originating in the United States, Trump said, claiming that Canada's tariff policy discriminates against American trade and puts American businesses at a disadvantage compared to those of other countries.

In early July, the United States declined to renew the USMCA at the agreement’s mandatory six-year joint review. The trade pact will now be subject to annual reviews, potentially until 2036, unless all three parties agree to extend it.

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