United States Trade Representative (USTR) Jamieson Greer announced new 50 percent tariffs on Canadian goods, continuing a trade dispute even as talks over the United States, Mexico, Canada agreement (USMCA) are ongoing.
Greer announced 50 percent tariffs on three types of goods: motor vehicles, alcohol, and dairy. The tariffs mark a new chapter in the U.S.'s ongoing dispute with Canada, as U.S. President Donald Trump has continuously threatened Canada with tariffs since taking office in January 2025, including threats of 100 percent tariffs in February 2026 after Canada and China finalized a trade deal.
According to the USTR, the latest tariffs fall under Section 338 of the Tariff Act of 1930 and are meant to offset what it claims are discriminatory treatment of U.S. exports. It specifically highlighted that the newest tariffs will not apply to fish.
“While the administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect U.S. industry in national security-sensitive sectors,” Greer said. “Specifically, Canada has taken U.S. alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on U.S. vehicle exports to Canada from companies reshoring to the United States.”
The USTR said under Section 338, the president is empowered to impose duties of up to 50 percent to offset “the burden or disadvantage from a foreign country’s unequal imposition on or discrimination against the commerce of the United States.”
Multiple Canadian provinces have banned imports of alcohol produced in the U.S., the CBC reported, which has prompted the U.S. retaliation against similar goods from Canada. Despite the pushback from the U.S., some Canadian premiers are saying they will continue with the bans.
“The one way to embolden a bully is to capitulate, and I don’t think we should embolden Mr. Trump, who is clearly is a bully,” British Columbia Premier David Eby told CBC. “There is not a chance in hell that U.S. alcohol is going back on the shelf.”
The Canadian seafood industry has been keeping a close eye on U.S. trade policy.
The U.S. is by far Canada’s largest seafood trading partner, with its edible exports to the U.S. hitting a value of USD 4.3 billion (EUR 3.77 billion) in 2025. Canada is also a top export destination for U.S. seafood, and the U.S. exported USD 881 million (EUR 772 million) worth of seafood to the country in 2025, second only to China.
The new trade dispute with Canada comes as the U.S. is actively negotiating with both it and Mexico regarding the USMCA. The Trump administration recently decided to forgo an extension of the trade deal, triggering a decade-long process that will see the deal reviewed every year before it expires in 2036.
Greer recently announced that he will travel to Mexico on 22 July to continue bilateral discussions related to the USMCA.
