Trump signs 50% tariffs on Canadian goods from hockey sticks to cement, citing 'discriminatory treatment' of US products

The tariff order

On Monday, July 20, President Trump signed an order imposing additional tariffs of 50% on a wide range of Canadian imports. The White House said the measure responds to Canada's "discriminatory treatment" of American automobiles, alcohol, and dairy products. The tariffs will take effect 30 days after signing, on August 19, 2026, and apply to roughly $20 billion worth of goods, according to US Trade Representative Jamieson Greer.

While the government continues to secure fair and reciprocal trade agreements, Canada, unlike other partners and allies, continues to retaliate against the United States.

Products targeted and exemptions

The list of affected items includes wine, hockey sticks, cement, furniture, and clothing. Energy products, potash fertilizer, fish, and critical minerals are exempt, as are goods already covered by other sector-specific tariffs. Notably, the new duties also hit products that had previously been duty-free under the US-Mexico-Canada Agreement (USMCA). The 2020 pact was not extended, and renegotiations could stretch to 2036, according to a government official.

Legal basis: a 1930 trade law

Trump invoked Section 338 of the Trade Act of 1930, a nearly century-old statute that allows the president to act against countries deemed to engage in discriminatory trade practices. The move comes after the US Supreme Court blocked Trump from using emergency powers to impose broad tariffs, forcing the administration to find alternative legal pathways. Several Democratic lawmakers had previously proposed repealing Section 338, fearing it could be used to destabilize the economy.

Wildfire smoke and earlier threats

Days before the tariff order, Trump threatened additional levies over smoke from Canadian wildfires that blanketed the US Northeast. On his Truth Social platform, he wrote that the costs of air pollution must "inevitably" be added to existing tariffs. Ontario Premier Doug Ford dismissed the threat as "nonsense." Smoke from dozens of fires in Ontario and Minnesota had triggered air quality warnings in Washington, D.C., and reduced visibility in New York.

Nonsense.

Reactions and trade relations

Canadian Prime Minister Mark Carney rejected the discrimination allegations, and Ottawa views the tariffs as a violation of the USMCA. The escalation follows a pattern of on-again, off-again tariff threats from Trump, who has made tariffs a central tool of his second term. The administration has also instructed aides to examine whether further tariffs should be imposed over the wildfire smoke. The dispute risks higher inflation and further deterioration in bilateral ties.