Duties exclude energy, potash, critical minerals from new levy
President Donald Trump signed three proclamations Monday imposing a 50% tariff on a wide range of Canadian imports, declaring that Canada has unfairly discriminated against American autos, alcohol and dairy products. An administration official who insisted on anonymity on a call with reporters to preview the actions said Trump signed the proclamations 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 official said.
The duties take effect on August 19 and build on trade barriers already in place between the two nations. The targeted goods range from wine and hockey sticks to commercial cement, according to the White House. Energy products, potash, fish and critical minerals are excluded from the new levies. The tariffs cover goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA, the 2020 trade pact that was not renewed by the U.S., triggering a new set of negotiations that could run until 2036.
The White House said the tariffs were necessary to protect American businesses. The official said Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable. Trump’s proclamations argued that Canada discriminates against American autos, alcohol and cheese relative to other nations, but his argument rests in large part on retaliatory actions taken by Canada after Trump imposed tariffs on Canada for what the administration said was Canada’s failure to do more to stop the smuggling of fentanyl, according to the Associated Press.
The U.S. has been maintaining active tariffs ranging from 15% to 50% on Canadian steel, aluminum and copper, according to reporting from the cluster sources. Washington also charges a 35% tariff on Canadian softwood lumber and a 25% tax on non-U.S. parts in cars. Canada has its own 25% counter-tariff on selected imports of American steel, aluminum and vehicles.
Trump noted in his autos proclamation that Canada maintained, starting in April 2025, a 25% tariff on imports of U.S. motor vehicles that did not qualify for preferential treatment under the USMCA, sources reported. The White House said regarding alcohol that all but two Canadian provinces and territories halted the purchase and retailing of American alcoholic beverages beginning last year, which was also a response to Trump’s tariffs. Trump also objected to Canada’s treatment of U.S. cheese, saying in his proclamation that Canada discriminates against the United States compared to Europe on dairy products.
The official also said that Trump had requested his aides look into additional tariffs on Canada because its wildfires hurt air quality in the United States. Trump had threatened last week to impose tariffs due to smoke from devastating wildfires in Canada drifting across large portions of the U.S. He wrote on Truth Social that “We are holding Canada responsible for the fact that they are not properly maintaining their Forests, and Brush therein, and the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable!”
Trump watched Sunday’s World Cup final with Canadian Prime Minister Mark Carney. After the match, Trump told reporters he had raised the issue of wildfire smoke with Carney. “I told him, I mean, ‘You got to stop these fires from coming in and, you know, poisoning our air. Our air has been poisoned,’” Trump said of their conversation.