On Monday, July 21st, 2026, the Trump administration announced a new 50 percent tariff on certain Canadian imports, including cultural goods such as beer, whisky, and hockey sticks. The tariffs will affect over $20 billion worth of annual imports, representing about 2 percent of total U.S.-Canada trade last year, according to The New York Times.

The White House's official X account justified the move by stating, "Canada imposed an unfair tariff scheme on American cars," which led to fewer American cars being imported into Canada and caused losses for U.S. automakers. The statement concluded, "President Trump won't put up with Canada's trade schemes."

These tariffs apply to items that are covered under the United States-Mexico-Canada Agreement (USMCA), a trade deal negotiated by Trump during his first term but which he has recently sought to dismantle.

Legally, the administration invoked Section 338 of the Tariff Act of 1930, commonly known as the "Smoot-Hawley" tariff law. This law, historically linked to exacerbating the Great Depression, allows the president to impose tariffs up to 50 percent on countries discriminating against American commerce. However, this provision has never been used before and has been considered defunct due to legislation passed in 1962 and 1974. Some experts, including American Enterprise Institute Senior Fellow Stan Veuger, argue that Congress should have repealed it long ago.

While trade concerns and bilateral irritants remain, critics note that tariffs are not a substitute for constructive engagement between nations.

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