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U.S. hits Canada with stiff new tariffs, escalating trade tensions

The Trump administration on Monday said it would slap 50% tariffs on some goods imported from Canada, in an effort to end what it sees as discriminatory trade practices by Ottawa against the U.S. automobile, dairy and alcohol industries.

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U.S. hits Canada with stiff new tariffs, escalating trade tensions
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The Trump administration is slapping 50% tariffs on some Canadian goods

July 20, 2026, 5:53 p.m. ET

The Trump administration on Monday said it would slap 50% tariffs on some goods imported from Canada, in an effort to end what it sees as discriminatory trade practices by Ottawa against the U.S. automobile, dairy and alcohol industries.

Senior administration officials said they were using Section 338 of the Tariff Act of 1930 for the first time to put in place tariffs that will go into effect in 30 days, leaving some time for bilateral talks. Energy, potash, fish and critical minerals are exempt from the new levies.

About the Author

Greg Robb is a senior reporter for MarketWatch in Washington. Follow him on Twitter @grobb2000.

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