The tariffs were launched under Section 338 of the 1930 Trade Act, with Trump signing three proclamations to put the measures into effect, the Associated Press reported, citing an administration official.
The Trump administration has accused Canada of unfairly discriminating against American autos, alcohol and dairy products.
Canadian Prime Minister Mark Carney called out the new tariffs as “unilateral US trade actions” and accused Washington of violating of the Canada-United States-Mexico Agreement (CUSMA).
“Canada, as is its right, has merely matched those measures,” Carney said in a statement, referring to Ottawa’s response to earlier US tariffs.
Carney, however, signalled that Canada remained open to negotiations, saying the country had made “detailed and comprehensive proposals” to resolve the dispute and modernise CUSMA.
“We stand ready to intensify those discussions in the coming weeks,” he said, adding that Canada was prepared to “engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.”
The latest escalation threatens to further strain ties between the US and Canada, whose economies are deeply integrated. An administration official told AP that Canada was one of the few countries besides China to retaliate against Trump’s previous tariffs and argued that it must be held accountable.
Several Democratic lawmakers had proposed repealing Section 338 last year, warning that Trump could use the rarely invoked provision in ways that could destabilise the economy.
First Published: Jul 21, 2026 7:10 AM IST
