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U.S. Imposes 50% Tariffs on Canadian Goods Under Trade Act Authority

FW Desk News

FreightWatch.News

·

Monday, July 20, 2026

The United States has levied 50% tariffs on a broad range of Canadian imports, bypassing duty-free protections under the United States-Mexico-Canada Agreement. The duties were implemented through Section 338 authority and cover numerous product categories regardless of trade agreement status. The Trump administration shifted to this legal provision after the Supreme Court invalidated previous emergency-based import duties, relying instead on alternative provisions under the Trade Act of 1974 to maintain tariff authority. The tariffs affect manufacturers and importers across multiple sectors. Canadian exporters face significant cost pressures as the duties take effect immediately.

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