Canada races to avoid new U.S. tariffs of up to 50%

Trump tariffsCanada races to avoid new U.S. tariffs of up to 50%The duties would hit a wide swath of goods including hockey sticks, building materials, clothing and dairy products.Listen to this article with a free profile00:0000:00President Donald Trump speaks with Canadian Prime Minister Mark Carney at a working lunch with leaders of G7 and the Middle East, on June 16 in Evian-les-Bains, France.Evelyn Hockstein / Pool via Getty Images fileShareAdd to GoogleAug. 17, 2026, 12:31 PM EDTBy Steve Kopack, Christine Romans and Kayla SteinbergThe Canadian government is racing to negotiate a deal with the Trump administration in order to avoid a fresh wave of U.S. tariffs set to hit many of its exports to the United States starting on Wednesday.However, after weeks of meetings, the prospects for a deal remained uncertain Monday, and Canadian broadcaster CBC reported that the two countries were at an impasse. The new tariffs, if implemented, would hit about $20 billion worth of Canadian products imported to the U.S., including hockey sticks, some clothing, wines, some dairy products and certain building materials such as cement and plywood. Energy products, potash, fish, and critical minerals are excluded from the duties.In 2025, Canada ranked as the third largest source of imports for the U.S., according to Census Bureau data, with more than $380 billion worth of goods crossing the border into the states last year.The White House says the tariffs are in response to Canada’s “discriminatory treatment of American products” and says it’s “leveling the playing field for crucial American exports—cars, alcohol, and dairy.” It plans to implement the duties under Section 338 of the Tariff Act of 1930, a 96-year-old law that authorizes the president to hit any foreign country that discriminates against U.S. commerce with tariffs of up to 50%. No president has ever invoked Section 338 before, and legal challenges are all but certain to be filed against the tariffs.Nonetheless, impor...