President Donald Trump signed three proclamations under Section 338 of the Tariff Act of 1930 that impose additional 50% tariffs on certain imports from Canada, the White House said Monday.
The administration said the tariffs cover three distinct categories of Canadian goods, including products such as wine and cement. The tariffs are set to begin 30 days after the signing.
Officials said the Section 338 tariffs apply to covered goods regardless of whether they originate under the U.S.-Mexico-Canada Agreement, and that the measures are intended to offset what the administration described as burdens and disadvantages to U.S. commerce resulting from Canada’s treatment of U.S. exports.
The proclamations list exceptions, including energy and potash, goods subject to tariffs under Section 232, and certain other products such as fish and critical minerals.
Section 338 authorizes the president to impose tariffs when a country disadvantages U.S. exporters relative to exports of another country, according to the administration.
The White House said the action responds to what it characterized as Canadian barriers affecting U.S. autos, alcohol and dairy products. The administration will use the tariffs to encourage negotiations.
Administration Cites Alleged Barriers in Autos
The administration says Canada imposes tariffs and quotas on U.S.-made cars that it does not apply to imports from other countries. It also argues that Canada’s quota administration effectively encourages U.S. auto companies to invest production in Canada rather than the U.S.
The administration further states that from April 2025 through March 2026, Canadian imports of U.S. motor vehicles fell by about 22%, or $5.6 billion, compared with the same period in 2024-25. It says imports of motor vehicles from other countries increased during that period.
Administration Cites Restrictions on Alcohol
The administration says all but two Canadian provinces and territories have halted purchasing, distributing or retailing U.S. alcoholic beverages, without similar restrictions on other countries.
It says that from March 2025 through February 2026, Canadian imports of U.S. alcoholic beverages fell by about 81%, or $582 million, compared with the same period in 2024-25.
Administration Cites Dairy Measures
The administration says Canada’s dairy policies include tariff-rate quotas on U.S. cheese that it describes as more restrictive than quotas Canada applies to similar cheese imports from the European Union, despite trade arrangements with both the U.S. and the EU.
The administration also linked the action to its broader trade policy, which it said aims to increase market access for U.S. exports and strengthen U.S. manufacturing.
