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ARTICLE · 03 AUGUST 2026

Trump Plays Hardball With Canada

Millar Kreklewetz
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President Trump has invoked a Depression-era trade statute to impose sweeping 50% tariffs on Canadian dairy, alcohol, and automobiles, directly challenging Canada's protectionist Supply Management system. The unprecedented use of Section 338 of the Tariff Act of 1930 signals an aggressive push for major concessions on agricultural trade barriers as CUSMA negotiations intensify.

CanadaInternational Law
Robert Kreklewetz
Robert Kreklewetz
Isaac Thompson
Isaac Thompson

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On July 20, 2026, President Donald Trump invoked a Great Depression-era trade statute to announce 50% tariffs on a wide array of Canadian exports. The sweeping orders rely on Section 338 of the Tariff Act of 1930 (“Section 338”, codified at 19 U.S. Code § 1338) and specifically target Canadian dairy, alcohol, and automobiles.

For Canadian importers, exporters, and customs professionals, the message is clear. Beyond retaliating against specific sector disputes, the U.S. administration is aggressively signaling that it wants major concessions on Canada's protectionist "Supply Management" framework for dairy products – and it may well have a point.

The Section 338 Proclamations

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