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On July 20, 2026, President Donald Trump announced that his administration will impose additional 50% ad valorem duties on a range of Canadian products, effective 12:01 a.m. ET on August 19, 2026. The announcement came via three separate proclamations that claimed Canadian discrimination against U.S. commerce in dairy products,alcoholic beverages, and motor vehicles, respectively.
Annex II of the motor vehicles proclamation provides a full list of subject merchandise, which spans most sections of the Harmonized Tariff Schedule. The additional 50% ad valorem duties will not apply to goods that are already subject to Section 232 tariffs, nor will they apply to goods subject to the World Trade Organization Agreement on Trade in Civil Aircraft (except for unmanned aircraft).
President Trump cited Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) as legal justification for the proposed tariffs. Part of the original Smoot-Hawley Tariff Act, Section 338 authorizes the president to impose additional duties of up to 50 percent against a foreign country that places a “burden or disadvantage” on U.S. commerce through direct or indirect discrimination. Section 338 requires a finding that such tariffs would serve the public interest.
The proposed tariffs come in response to Canadian tariff-rate quotas on U.S. dairy products, regional governments’ prohibitions against the purchase and distribution of U.S. alcoholic beverages, and tariffs on U.S. motor vehicles that do not receive preferential, duty-free treatment under the United States-Mexico-Canada Agreement (USMCA).
In an official statement responding to the proposed tariffs, Canadian Prime Minister Mark Carney stated that Canada is “ready to engage” in pursuit of mutually beneficial solutions. Ontario Premier Doug Ford stated that Canada should retaliate “tariff for tariff, dollar for dollar.”
Braumiller Law Group will provide further updates on the proposed tariffs as they become available.
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