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Trump’s Canada tariffs complicate trade talks

Jul 21, 2026, 5:19am EDT
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Donald Trump, Claudia Sheinbaum, and Mark Carney
Dylan Martinez/Reuters

President Donald Trump’s additional 50% tariff on a slew of Canadian goods is likely to complicate the administration’s talks on Tuesday in Mexico on the US-Mexico-Canada free trade agreement, which Trump has indicated he wants to exit.

The tariffs, which officials characterized as a response to Canada’s “discriminatory” practices, affect goods ranging from wine to hockey sticks and will formally take effect in 30 days.

The decision, which a senior administration official emphasized is separate from any potential wildfire-related tariffs targeting Canada, is still being digested by Republicans on Capitol Hill, some of whom saw the levies as part of a broader negotiation.

“I’m not a fan of tariffs. I’m a fan of engagement. Canada, I worry they’re not engaging,” said Rep. Adrian Smith, R-Neb.

And the move could be subject to legal challenges: Trump signed the tariffs pursuant to Section 338 of the Tariff Act.

The official said the law “has not been used for this purpose before,” but argued that these levies fit within the confines of the statute.

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