Trump imposes 50% tariffs on Canadian goods, citing disputes over autos, alcohol and cheese

By — Josh Boak, Associated Press Josh Boak, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/politics/trump-imposes-50-tariffs-on-canadian-goods-citing-disputes-over-autos-alcohol-and-cheese Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Trump imposes 50% tariffs on Canadian goods, citing disputes over autos, alcohol and cheese Politics Jul 20, 2026 6:27 PM EDT WASHINGTON (AP) — President Donald Trump on Monday imposed 50% tariffs on most Canadian goods, declaring that Canada has unfairly discriminated against American autos, alcohol and dairy products. The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump's return to the White House. The administration official previewing the action said that Canada was one of the only nations other than China that retaliated against Trump's previous tariffs and must be held accountable. Educate your inbox Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. The official insisted on anonymity on a call with reporters to preview the president's actions and said that Trump signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act. Several Democratic lawmakers last year proposed repealing the section because they said Trump could use it to destabilize the economy. The new 50% tariffs would exclude energy products, potash, fish and critical minerals, but they would include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That 2020 trade pact was not renewed by the U.S., triggering a new set of negotiations that could run until 2036. The White House said in a fact sheet that the tariffs would go into effect in 30 days, meaning there is time for negotiations as Trump has not always followed through on his announced tax hikes on imports. Still, the tariffs could escalate into a wider trade war as Canada seeks to defend its economy. The Canadian federal government did not immediately comment on the tariff, but Ontario Premier Doug Ford saw a possible showdown ahead. "If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar," Ford posted on social media. The tariffs also pose a threat to other U.S. trading partners, not just Canada, and inject "massive uncertainty" into the global economy, said Scott Lincicome, vice president of general economics at the Cato Institute, a libertarian think tank. "We crossed the Rubicon," Lincicome said. "The invocation of 338 is the nuclear option for Trump tariffs." The new tariffs carry serious political and economic risks for Trump ahead of the November midterm elections for control of Congress. His "Liberation Day" tariffs last year in April provoked a financial market meltdown over concerns about inflation and a recessi