US$20 billion in trade affected!The 50% tariff in the United States has been implemented, and No
- Author:Maintenance network
- Source:Maintenance network
- Release Date:2026-07-22
On July 20, local time, the United States announced another upgrade of trade measures against Canada.U.S. President Trump signed three presidential proclamations and decided to impose ad valorem tariffs of up to 50% on some Canadian imported goods in accordance with Section 338 of the Tariff Act of 1930.This is also the first time in the past century that the United States has used this legal provision, causing further tension in North American trade relations.
01 The United States announced new tariffs. According to the "Fact Sheet" and three presidential announcements issued by the White House on July 20, 2026, this measure targets three types of "discriminatory trade measures" in Canada that are identified by the United States, involving automobiles, alcoholic beverages, and dairy products.The White House stated that relevant Canadian policies constituted "unreasonable and unequal treatment" of U.S. goods. Therefore, the president authorized under Section 338 of the Tariff Act of 1930 to impose additional tariffs of up to 50% on relevant Canadian goods to "offset the adverse impact on U.S. commerce."The Office of the U.S. Trade Representative (USTR) issued a statement on the same day, saying that Canada had previously removed some U.S. alcoholic products from the shelves, granted EU dairy products higher market access treatment, and imposed restrictions on some U.S. automobile exports, which are important basis for this tariff measure.Implementation on August 19. According to information released by the White House, the new tariffs will be officially implemented at 00:01 Eastern Time on August 19, 2026, and will be superimposed on the existing tariffs.The affected goods cover a wide range of products, including: wine and some alcoholic beverages, cheese and other dairy products, hockey sticks and other sporting goods, cement furniture, swimming pools and related products, fishing rods, seeds, clothing, wigs and other consumer goods. The White House estimates that the measure involves nearly $20 billion in Canadian exports to the United States.At the same time, energy products, potash fertilizers, critical minerals, some fish, and goods already subject to Section 232 tariffs are explicitly excluded from the scope of this tax.03 Canada’s response It is worth noting that Trump recently publicly stated that wildfire smoke from Canada affects the air quality of the United States and threatened to consider incorporating related costs into trade measures.However, senior U.S. government officials made it clear at a media briefing on July 20 that the current round of 50% tariffs implemented under Article 338 has nothing to do with the Canadian wildfire issue, and the measures only target the trade dispute itself.Canadian Prime Minister Mark Carney later responded that Canada is willing to continue to resolve trade differences between the two sides through negotiations.He said that the latest U.S. tariff measures will not only impact Canadian export companies, but may also increase the procurement costs of U.S. companies and consumer spending, which is not conducive to the economic development of the two countries.04 Market Impact Before the introduction of this tariff measure, the trade friction between the United States and Canada had been going on for several months.Since the United States has not continued to maintain the existing arrangements under the United States-Mexico-Canada Agreement (USMCA), the trade disputes between the two sides surrounding automobiles, dairy products, and alcoholic products have continued to escalate.The activation of Section 338 of the Tariff Act of 1930 has been considered by many international media as an important shift in U.S. trade policy in recent years.For the shipping and supply chain industry, if the new tariffs are officially implemented on August 19 as planned, related goods may experience a certain degree of demand for advance stocking and shipment in the next few weeks. After the new tariffs officially take effect, the logistics demand for some consumer goods, building materials and light industrial products exported from Canada to the United States may be suppressed. Changes in cargo volume in the North American cross-border supply chain and related routes deserve continued attention.
01 The United States announced new tariffs. According to the "Fact Sheet" and three presidential announcements issued by the White House on July 20, 2026, this measure targets three types of "discriminatory trade measures" in Canada that are identified by the United States, involving automobiles, alcoholic beverages, and dairy products.The White House stated that relevant Canadian policies constituted "unreasonable and unequal treatment" of U.S. goods. Therefore, the president authorized under Section 338 of the Tariff Act of 1930 to impose additional tariffs of up to 50% on relevant Canadian goods to "offset the adverse impact on U.S. commerce."The Office of the U.S. Trade Representative (USTR) issued a statement on the same day, saying that Canada had previously removed some U.S. alcoholic products from the shelves, granted EU dairy products higher market access treatment, and imposed restrictions on some U.S. automobile exports, which are important basis for this tariff measure.Implementation on August 19. According to information released by the White House, the new tariffs will be officially implemented at 00:01 Eastern Time on August 19, 2026, and will be superimposed on the existing tariffs.The affected goods cover a wide range of products, including: wine and some alcoholic beverages, cheese and other dairy products, hockey sticks and other sporting goods, cement furniture, swimming pools and related products, fishing rods, seeds, clothing, wigs and other consumer goods. The White House estimates that the measure involves nearly $20 billion in Canadian exports to the United States.At the same time, energy products, potash fertilizers, critical minerals, some fish, and goods already subject to Section 232 tariffs are explicitly excluded from the scope of this tax.03 Canada’s response It is worth noting that Trump recently publicly stated that wildfire smoke from Canada affects the air quality of the United States and threatened to consider incorporating related costs into trade measures.However, senior U.S. government officials made it clear at a media briefing on July 20 that the current round of 50% tariffs implemented under Article 338 has nothing to do with the Canadian wildfire issue, and the measures only target the trade dispute itself.Canadian Prime Minister Mark Carney later responded that Canada is willing to continue to resolve trade differences between the two sides through negotiations.He said that the latest U.S. tariff measures will not only impact Canadian export companies, but may also increase the procurement costs of U.S. companies and consumer spending, which is not conducive to the economic development of the two countries.04 Market Impact Before the introduction of this tariff measure, the trade friction between the United States and Canada had been going on for several months.Since the United States has not continued to maintain the existing arrangements under the United States-Mexico-Canada Agreement (USMCA), the trade disputes between the two sides surrounding automobiles, dairy products, and alcoholic products have continued to escalate.The activation of Section 338 of the Tariff Act of 1930 has been considered by many international media as an important shift in U.S. trade policy in recent years.For the shipping and supply chain industry, if the new tariffs are officially implemented on August 19 as planned, related goods may experience a certain degree of demand for advance stocking and shipment in the next few weeks. After the new tariffs officially take effect, the logistics demand for some consumer goods, building materials and light industrial products exported from Canada to the United States may be suppressed. Changes in cargo volume in the North American cross-border supply chain and related routes deserve continued attention.