Reshma Kapadia

The Trump administration on Monday said it would impose 50% tariffs on neighbor Canada, citing discriminatory treatment of U.S. exports including U.S. alcohol.

The White House said it would impose tariffs on goods ranging from hockey sticks to cement, and these levies would also apply to goods covered under the U.S.-Mexico-Canada trade pact that have been excluded in other tariff actions.

The administration is using Section 338 of the Trade Act of 1930, something it hasn't yet used in the past year as it has threatened and imposed tariffs on various trade partners.

The U.S. outlined only limited exemptions for energy, critical minerals, and products subject to sectoral Section 232 tariffs.

"The scale of these threatened Canada tariffs is significant," says Ryan Majerus, a partner at King & Spalding and former U.S. trade official, noting that last year's global tariffs allowed for carve-outs for goods covered under USMCA.

Tensions between the U.S. and Canada have been high as the countries with Mexico renegotiate the U.S.-Mexico-Canada trade pact. While the U.S. has had several formal negotiations with Mexico, it hasn't done so with Canada.

Write to Reshma Kapadia at reshma.kapadia@barrons.com

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July 20, 2026 17:55 ET (21:55 GMT)

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