To keep you promptly informed of the most recent developments in international trade policy, we are sharing the following update regarding the announcement by U.S. President Donald Trump of an additional 50% tariff on certain goods originating in Canada, in response to what his administration considers discriminatory treatment of U.S. exports of motor vehicles, alcoholic beverages, and dairy products.
The measure will enter into force on August 19, 2026, and will apply even when the goods comply with the rules of origin under the United States-Mexico-Canada Agreement (USMCA).
Proclamations Issued
The measures were published on July 20, 2026, under the following titles:
- Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Motor Vehicles, related to motor vehicles.
- Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages, related to alcoholic beverages.
- Imposing Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Dairy, related to dairy products.
The three proclamations were issued pursuant to Section 338 of the Tariff Act of 1930, and each contains a different list of goods subject to the tariff.
Affected Goods
Alcoholic beverages:
HTSUS 2203, 2204, 2205, 2206, 2207, and 2208, covering beer, wine, vermouth, cider, fermented beverages, ethyl alcohol, whisky, rum, gin, vodka, brandy, liqueurs, and other distilled spirits. These goods are associated with additional code 9903.03.12.
Dairy products and derivatives:
HTSUS 0402, 0404, 1702, 1901, 2202, 3501, 3502, and 3504, covering concentrated or powdered milk and cream, whey, lactose, casein, albumins, protein isolates, and certain food preparations. These goods are associated with additional code 9903.03.13.
Honey, plants, flowers, seeds, resins, and food preparations:
HTSUS 0409, 0601 through 0604, 1209 through 1212, 1301, 1302, 1401, 1404, and 1901.
Salt, cement, and construction materials:
HTSUS 2501, 2523, 3214, 3918, 4410 through 4412, 4418, 6809, and 6810.
Plastic, rubber, wood, paper, and paperboard products:
HTSUS 3907, 3918 through 3921, 3923, 3924, 3926, 4016, 4401, 4402, 4407 through 4412, 4414, 4418, 4420, 4421, 4702, 4802, 4803, 4810, 4811, 4813, 4814, 4817 through 4821, 4823, 4908, and 4911.
Textiles, apparel, footwear, and accessories:
HTSUS 4101, 4103, 4201 through 4205, 4301, 4303, 5002, 5003, 5101, 5103, 5201, 5202, 5407, 5511, 5512, 5603, 5607, 5703, 5806, 5903, 5907, 5911, 6006, 6104, 6109, 6110, 6116, 6201 through 6204, 6210, 6211, 6303, 6305 through 6307, 6403, 6505, 6506, and 6704.
Tools, machinery, and industrial equipment:
HTSUS 8201 through 8206, 8209, 8212, 8301, 8303, 8306, 8410, 8414, 8418, 8419, 8421, 8422, 8424, 8426, 8433, 8438, 8440, 8442, 8443, and 8479.
Electronic equipment, telecommunications equipment, monitors, projectors, and cables:
HTSUS 8508, 8517, 8521, 8523, 8525, 8526, 8528, 8529, 8534, 8537, 8543, and 8544.
Furniture and lighting articles:
HTSUS 9401, 9403, and 9405.
Toys and sporting goods, including hockey products:
HTSUS 9503, 9504, 9505, 9506, and 9507.
Jewelry, works of art, antiques, and collectors' items:
HTSUS 7102, 7106, 7113, 7117, 7118, and 9701 through 9706. Applicability must be confirmed based on the specific HTSUS classification of each product.
Excluded products include, among others, energy products, potash, fish, certain critical minerals, and goods subject to Section 232 tariffs.
J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics contained in this agreement.
If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.
