President Donald Trump on Tuesday ordered sweeping new tariffs on certain Canadian imports, escalating a trade dispute with Ottawa over “unreasonable and unequal” restrictions on American alcoholic beverages.
Under the proclamation signed Monday, the United States will impose an additional 50 per cent tariff on selected Canadian products beginning August 19, 2026, citing Canada’s provincial bans on the purchase, distribution and sale of US beer, wine and spirits.
It said Canada unreasonably burdens and disadvantages US alcoholic beverages but not alcoholic beverages of other countries.
“Canada, through discrimination or an unreasonable and unequal imposition, burdens US commerce but not the commerce of other countries and disadvantages US commerce compared to the commerce of other countries, ” it said.
The White House said the move was authorized under Section 338 of the Tariff Act of 1930, a rarely used provision allowing the president to impose duties against countries accused of discriminating against American commerce.
“Canada has imposed an unreasonable regulation or limitation on articles wholly or in part the growth or products of the United States,” the proclamation states.
The administration said Canadian provinces and territories created an unfair advantage for foreign competitors by restricting US alcohol products while allowing imports from other countries to continue.
“Canada is discriminating in fact against the commerce of the United States,” the proclamation said.
The White House pointed to a sharp decline in American alcohol exports to Canada following provincial restrictions that began in March 2025.
According to the proclamation, Canadian imports of US alcoholic beverages fell from approximately USD 718 million to USD 137 million, an 81 per cent decline during the March 2025–February 2026 period compared with the previous year.
“US businesses and workers, and US commerce suffer from the Canadian provinces’ and territories’ unreasonable and unequal impositions,” the document said.
The administration argued that countries including Chile, Japan, Argentina, Ireland, New Zealand and Australia benefited from the shift away from American suppliers, with their exports to Canada increasing during the same period.
The proclamation said the new duties are intended to pressure Canada to remove restrictions and restore market access for US producers.
“When US producers are unfairly denied export opportunities, they lose sales that support production in the United States,” the White House said.
The administration argued that Canadian policies have harmed American manufacturers, farmers and workers connected to the alcoholic beverage industry.
“The unreasonable, unequal, and discriminatory actions by Canada suppress US manufacturing and agricultural output, as well as investment,” the proclamation stated.
The additional duties will apply to Canadian products listed in the proclamation’s tariff annexes and will be added on top of existing duties, taxes and fees.
The order directs US Customs and Border Protection to issue rules needed to enforce the tariffs and authorizes federal agencies to take steps necessary for implementation.
“The additional ad valorem duties imposed in this proclamation will offset the burden or disadvantage on US commerce,” the proclamation said.
The announcement marks another escalation in trade tensions between the two North American economies, with the Trump administration framing the tariffs as a response to what it describes as unfair treatment of American companies.
The White House said the tariffs could be reduced, modified or removed if circumstances change, but warned that further action could follow if Canada maintains restrictions on US products.
“The President may suspend, revoke, supplement, or amend any proclamation whenever the public interests require such action,” the order states.
The measure follows separate Trump administration actions targeting Canadian trade practices involving dairy products and motor vehicles, signaling a broader push to use tariffs as leverage in negotiations with Ottawa.
