Executive Summary
On August 22, 2026, U.S. tariffs of 50 percent imposed under Section 338 of the Tariff Act of 1930 (19 U.S.C. § 1338) took effect against a range of imports from Canada, including chemicals, prepared food and beverages, plastics, metal items, machinery, cosmetics, wood and paper products, industrial equipment, and electronics and telecommunication products, among others. The tariffs were first announced in three proclamations issued by President Trump on July 20, 2026, in response to Canadian measures that the President found to discriminate against U.S. commerce. The delay between the issuance of the proclamations and the effective date of the tariffs provided a strategic window for U.S. and Canadian officials to hold negotiations seeking to resolve several outstanding bilateral trade irritants and avert the duties. While bilateral talks intensified and a deal seemed forthcoming, talks ultimately broke down. In response to the U.S. tariffs, Canada announced its own responsive tariffs, which are scheduled to take effect on September 8.
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