Trump Invokes Section 338 to Impose Additional Duties on Canadian Imports
Short summary: The Trump Administration has announced new tariffs on Canadian imports and issued three presidential proclamations addressing Canada’s treatment of U.S. dairy products, alcoholic beverages, and motor vehicles. The actions rely on Section 338 of the Tariff Act of 1930 – a statutory authority that has remained largely unused for decades.
On July 20, 2026, the Trump Administration published a fact sheet announcing new 50% tariffs on a broad range of Canadian imports. Simultaneously, the Administration issued three separate presidential proclamations targeting Canada’s treatment of U.S. dairy products, alcoholic beverages, and motor vehicles. According to the White House, these actions are intended to respond to what the Administration describes as Canada’s long-standing discrimination against U.S. commerce.
The New Tariffs
The White House announced that the United States will impose an additional 50% tariff on many Canadian-origin products beginning 30 days after the order’s issuance. According to the Administration, the new duties are intended to offset Canada’s alleged discriminatory treatment of American products and businesses.
Products eligible for USMCA treatment are not exempt from the new tariffs. Several categories of goods are excluded from the new tariffs, including:
- Energy products
- Critical minerals
- Potash
- Fish
