Tariff Resources

The U.S.-Canada trade relationship has taken another turn in recent weeks, with new U.S. tariffs on certain Canadian goods now in effect and Canada preparing new counter-tariffs on U.S. products.

The latest developments follow months of trade tensions and negotiations between the United States and Canada over tariffs and other trade issues. The two countries continued discussions through July and August in an effort to reach an agreement, but the talks ultimately broke down.

On July 20, President Trump signed three proclamations imposing additional 50% tariffs under Section 338 of the Tariff Act of 1930 on specified Canadian products. The tariffs cover products in categories including alcoholic beverages, dairy and motor vehicles, as well as other goods ranging from wine and hockey sticks to cement. The White House said the tariffs were intended to address what the administration considers discriminatory treatment of U.S. commerce by Canada.

The tariffs were initially scheduled to take effect August 19. On August 18, the White House delayed implementation by three days, setting the effective date for August 22. The tariffs are now in effect.

Canada has announced that it will respond with new counter-tariffs. On August 27, the Canadian government confirmed that it will match the new U.S. tariffs dollar-for-dollar and rate-for-rate, imposing additional tariffs on approximately $27.6 billion in U.S. imports beginning September 8. Canada also announced that it has suspended trade negotiations with the United States, saying recent U.S. proposals were not in Canada's best interest.