NEW YORK, July 21 — United States (US) President Donald Trump signed three proclamations on Monday to impose an additional 50 per cent tariff on certain Canadian goods, claiming that Canada was discriminating against US commerce.
Xinhua reported that the additional 50 per cent ad valorem duties on certain dairy products, alcoholic beverages, motor vehicles and related goods will become effective as of 12.01am Eastern Time (0401 GMT) on August 19, according to documents posted on the White House website. Energy products, potash, fish, and critical minerals will be exempt from the tariff.
In a proclamation concerning motor vehicles and related products, he said Canada has maintained a 25 per cent tariff on imports of US motor vehicles that do not qualify for preferential, duty-free treatment under the US-Mexico-Canada Agreement (USMCA) since April 9, 2025.
Canada also maintains a tariff-rate quota on US motor vehicles that qualify for preferential, duty-free treatment under the USMCA.
Following the implementation of the tariff measures, Canadian imports of US motor vehicles fell by about 22 per cent, from approximately US$25.9 billion (RM105.9 billion) between April 2024 and March 2025 to around US$20.3 billion (RM83.01 billion) during the same period of 2025-2026, according to the proclamation.
“Canada only applies the tariff scheme to US-origin motor vehicles,” Trump said, stating that Canada’s tariff policy discriminates against US commerce and puts American businesses at a disadvantage compared with those of other countries.
In early July, the US declined to renew the USMCA at the agreement’s mandatory six-year joint review. The trade pact will now be subject to annual reviews, potentially through 2036, unless all three parties agree to extend it.
