The U.S. Trade Representative’s office reported that the new tariffs will apply to nearly $20 billion of imports from Canada, equivalent to 5.2 percent of bilateral goods trade last year. U.S. Census Bureau data places the value of U.S. imports from Canada in 2025 at $382 billion.
President Donald Trump signed three proclamations invoking Section 338 of the Tariff Act of 1930 to impose the duties in response to Canadian policies on U.S. exports. U.S. Trade Representative Jamieson Greer said, «While the Administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect U.S. industry in national-security sensitive sectors.» The cited grievances include Canada’s dairy supply management system, differential tariffs on vehicles and actions by provinces to stop sales of American alcohol.
According to the proclamations, covered products encompass wine, hockey sticks, cement, dairy, swimming pools, wigs, furniture, fishing rods, seeds and clothing. U.S. export data show motor vehicle shipments to Canada declined 22 percent and alcoholic beverages by 81 percent over the past year. The tariffs will apply even to goods otherwise covered by the USMCA except for specific exempted categories such as energy, potash and critical minerals.
Canadian Prime Minister Mark Carney indicated that Ottawa was prepared to negotiate intensively to resolve the differences. «This trade dispute has raised costs for families, particularly in the U.S.,» Carney said. «Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens,» he added.
Former U.S. trade negotiator John Veroneau called the step ironic given Section 338’s history in the Tariff Act of 1930, which was associated with escalating retaliations during the Great Depression. Diamond Isinger, who advised former Prime Minister Justin Trudeau, noted that provincial leaders control alcohol sales decisions in Canada. The announcement followed meetings between U.S. and Canadian leaders at the FIFA World Cup final in New Jersey.
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