On July 20, 2026, President Trump signed three Presidential Proclamations imposing a 50% tariff on a broad range of Canadian-origin goods, marking the first modern use of Section 338 of the Tariff Act of 1930. These measures apply regardless of CUSMA qualification, affecting over 400 tariff codes including agricultural products, furniture, apparel, machinery, and manufactured goods. For Canadian businesses, CUSMA compliance may no longer eliminate US tariff risk.
On July 20, 2026, US President Donald J. Trump signed three Presidential Proclamations imposing a 50% tariff on a broad range of Canadian-origin goods effective, August 19, 2026.1 The measures were enacted under Section 388 of the Tariff Act of 1930 and apply regardless of whether covered goods qualify for duty-free treatment under the Canada-United States Mexico Agreement (CUSMA).2 While the Proclamations are tied to disputes involving motor vehicles, alcoholic beverages, and dairy products, the covered goods listed in Annex II to each Proclamation extend well beyond those and affect a broad range of Canadian exports.3
For Canadian businesses, the key message is clear: CUSMA compliance may no longer eliminate US tariff risk.
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