US imposes additional 50 percent tariff on certain goods from Canada

US imposes additional 50 percent tariff on certain goods from Canada

NEW YORK, JULY 21 — US President Donald Trump on Monday signed three proclamations to impose an additional 50 percent tariff on certain goods from Canada, accusing the country of discriminating against US trade, Xinhua reported.

Additional ad valorem duties of 50 percent on certain dairy products, alcoholic beverages, motor vehicles and related goods will take effect at 12:01 midnight Eastern Time (0401 GMT), August 19, according to a document posted on the White House website.

Energy products, potash, fish and critical minerals are exempt from the tariff.

In a declaration related to motor vehicles and related products, Trump said that Canada has since April 9, 2025 maintained a 25 percent tariff on imports of US motor vehicles that are not eligible for preferential duty-free treatment under the United States-Mexico-Canada Agreement (USMCA).

Canada also maintains a tariff rate quota on US motor vehicles that are eligible for preferential duty-free treatment under the USMCA.

Following the implementation of the tariff measures, Canada’s imports of motor vehicles from the US declined by about 22 percent, from about US$25.9 billion between April 2024 and March 2025 to about US$20.3 billion in the same period in 2025 and 2026, according to the declaration.

“Canada only imposes this tariff scheme on motor vehicles originating in the United States,” Trump said, claiming that Canada’s tariff policies discriminate against US trade and put American businesses at a disadvantage compared to businesses from other countries.

In early July, the US decided not to renew the USMCA during the agreement’s mandatory six-year joint review.

The trade agreement will now be subject to annual reviews, which could continue until 2036, unless all three parties agree to extend it.

— NAMED-XINHUA

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