Trump Administration Announces 50% Tariffs on $20 Billion in Canadian Goods on July 21

According to the U.S. Trade Representative (USTR), the Trump administration announced on July 21 new 50% tariffs on specific Canadian goods, affecting approximately $20 billion in annual imports. The tariffs cite unfair treatment of American alcohol, autos, and dairy products, marking a significant escalation in trade tensions between the two close neighbors.

Affected goods include milk, hockey equipment, beer, and plywood, while energy, potash, and critical minerals remain exempt. The measure invokes Section 338 of the 1930 Tariff Act, reportedly the first time this provision has been used. The Canadian dollar fell to a one-week low of 1.4085 against the U.S. dollar following the announcement. The tariffs are expected to take effect within 30 days.