Canadian Goods Impacted by New 50% U.S. Tariff Threat
On July 20, 2026, President Trump signed three executive orders threatening a fresh round of 50% tariffs on a list of Canada goods, citing retaliatory and “discriminatory” measures that Canada has put in place.
Using Section 338 of the Tariff Act of 1930, the new tariffs are set to take effect in 29 days from the announcement and will also apply to goods covered by the Canada-U.S.-Mexico Agreement on free trade (CUSMA), according to the orders.
Click here to see the full list of Canadian goods categories (with the HS Codes) that will be affected by the new 50% U.S. tariffs that are to take affect at 12:01 a.m. Eastern Time on August 19, 2026.
The U.S. Administration used three different justifications for the new tariffs, including:
- the provincial and territorial boycotts on American alcohol products,
- Canada’s retaliatory tariffs on U.S.-made vehicles and auto parts and
- quotas on American dairy imports under Canada’s supply management system.
Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) empowers the President to, among other things, impose duties of up to 50 percent on imports of a foreign country to offset the burden or disadvantage from a foreign country’s unequal imposition on or discrimination against the commerce of the United States.
- To read the Section 338 action on motor vehicles, click here.
- To read the Section 338 action on alcohol, click here.
- To read the Section 338 action on dairy, click here.
The categories chosen by President Trump represent nearly $20 billion in imports from Canada. Although the overall impact of these latest tariffs to the Canadian economy will be limited (represents approx. 3.3% of total Canadian manufacturing), the pain will be felt by a concentrated number of industries, effectively closing off the U.S. market to covered categories, and are likely designed to put pressure on Canada as CUSMA negotiations continue.
2026 Manufacturer Survey on Section 338 Tariffs
Canadian Manufacturers & Exporters (CME) has recently launched a survey to gather real-time intelligence from manufacturers across the country. This information will strengthen advocacy and ensure governments have the industry data needed to respond effectively. Please fill it out here: https://survey.zohopublic.com/zs/hbCZNZ
The 7-10 minute survey seeks input from manufacturers on the potential impact of the proposed U.S. Section 338 tariffs. The survey also includes questions on the broader Canada–U.S. trade negotiations and the support manufacturers may require during this period.
Survey responses will remain confidential and will be reported only in aggregate. Providing contact information does not mean your company’s name or comments will be shared publicly. CME will contact you before using any company-specific example with the media, government officials, or other external audiences.
CME’s President & CEO Dennis Darby participates on the PM’s Advisory Council, so feedback you provide can be directly passed onto the Prime Minister and key trade officials.
Sign-up Now or Get Further Information
If you are interested in participating in any of these peer networking groups or would like further information, please contact
Michael Jorgenson
(416) 282-0022 ext. 134 or
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