NEW YORK, (Xinhua) — U.S. President Donald Trump on Monday signed three proclamations to impose an additional 50 percent tariff on certain Canadian goods, saying Canada was discriminating against U.S. commerce.
The additional 50 percent ad valorem duties on certain dairy products, alcoholic beverages, motor vehicles and related goods will become effective as of 12:01 a.m. Eastern Time (0401 GMT) on Aug. 19, according to documents posted on the White House website. Energy products, potash, fish and critical minerals will be exempt from the tariff.
In a proclamation concerning motor vehicles and related products, Trump said Canada has maintained a 25 percent tariff on imports of U.S. motor vehicles that do not qualify for preferential, duty-free treatment under the United States-Mexico-Canada Agreement (USMCA) since April 9, 2025. Canada also maintains a tariff-rate quota on U.S. motor vehicles that qualify for preferential, duty-free treatment under the USMCA.
Following the implementation of the tariff measures, Canadian imports of U.S. motor vehicles fell by about 22 percent, from approximately 25.9 billion U.S. dollars between April 2024 and March 2025 to around 20.3 billion dollars during the same period of 2025-2026, according to the proclamation.
“Canada only applies the tariff scheme to U.S.-origin motor vehicles,” Trump said, claiming that Canada’s tariff policy discriminates against the U.S. commerce and puts American businesses at a disadvantage compared with those of other countries.
In early July, the United States declined to renew the USMCA at the agreement’s mandatory six-year joint review. The trade pact will now be subject to annual reviews, potentially through 2036, unless all three parties agree to extend it.
