US Imposes 50% Tariffs on Certain Canadian Products After Talks Fail

The US imposed 50% tariffs on approximately $20 billion worth of Canadian products on Saturday, August 22, after last-minute negotiations between the two countries failed to produce an agreement, CBS News reported (8-23-26). The tariffs had originally been scheduled to take effect Wednesday but were delayed for three days while negotiations continued.

The tariffs cover products including wood panels (excluding OSB), paper, furniture, wine, hockey sticks, cement, and dairy products. The duties are imposed under Section 338 of the Tariff Act of 1930 and apply to covered goods regardless of whether they are covered under USMCA. Energy products, potash, certain fish and critical minerals, and products already subject to Section 232 tariffs—including softwood lumber products—are excluded from the additional Section 338 duties.

Canada said it plans to retaliate “dollar for dollar,” with new tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics set to take effect September 8. Prime Minister Mark Carney said Canada had been willing to remove remaining retaliatory tariffs on steel, aluminum, and autos if the US substantially reduced its own tariffs, but said Washington’s final demands went too far.

US officials said Canada declined to finalize terms that had previously been agreed upon. Canada had sought concessions on tariffs covering steel, aluminum, autos, and lumber, but the two sides were unable to reach agreement on those issues.

According to CBS, the new US tariffs are expected to affect about 5% of Canada’s annual exports to the US.