July 24, 2026
New 50% U.S. Tariffs on Canadian Goods Target Dairy, Alcohol and Autos But Cover Many Other Products
President Trump on July 20 issued three proclamations invoking Section 338 of the Trade Act of 1930, each imposing an additional ad valorem duty of 50% on certain products of Canada, effective 12:01 a.m. ET on August 19, 2026.
While the three proclamations are framed as responses to Canadian measures on dairy, alcoholic beverages, and motor vehicles, the actual product coverage is much broader. The annexes to each proclamation list the specific HTS numbers subject to the new 50% duty.
The full lists of impacted HS codes are set out in the annexes below:
- Dairy proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy”: Annex 1 | Annex II
- Alcoholic beverages proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages”: Annex I | Annex II
- Motor vehicles proclamation — “Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles”: Annex 1 | Annex II
The 50% duty applies regardless of CUSMA eligibility, with only narrow exclusions for energy, potash, fish, and critical minerals. Observers have noted that the tariffs are not taking effect immediately, providing Canada with time to negotiate.
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