As of 12:01 a.m. ET on August 22, 2026, the United States is charging a 50% tariff on roughly US$20 billion worth of Canadian goods. The tariffs took effect after three days of negotiations in Washington ended without a deal.
What is covered
The measures were imposed through three presidential proclamations issued under Section 338 of the Tariff Act of 1930, invoked on July 20, 2026. According to analyses by trade-law firms including Wiley and White & Case, this is the first time any US president has used Section 338, which allows duties against countries found to discriminate against US commerce. The proclamations cite Canadian treatment of US dairy, alcohol, and motor vehicle exports.
The three lists cover: dairy products (milk, cream, whey and related ingredients); alcoholic beverages; and a third list that — despite being labelled around motor vehicles — contains no cars. It instead spans electronics and telecom equipment, furniture and home goods, building materials such as lumber and cement, plastics and packaging, clothing and footwear, toys and sporting goods, machinery and manufacturing inputs, cosmetics, and agricultural products such as plants and seeds (source: CFIB summary of the proclamations).
Two details matter for planning. First, the tariffs apply even to goods that qualify under CUSMA/USMCA. Second, they have no scheduled expiry date.
Who actually pays
A US tariff is paid by the US importer of record — the business bringing the goods across the border — to US Customs and Border Protection at entry. Canadian exporters do not remit the duty, but they feel it commercially: US buyers facing a 50% cost increase may renegotiate prices, reduce orders, or switch suppliers. How the cost is shared is a commercial negotiation, not a legal formula.
The Alberta picture
Alberta is heavily exposed to trade disruption: the CFIB’s Alberta director has noted that roughly 40% of the province’s small businesses export to the US and about half import American goods, and the Canadian Chamber of Commerce’s vulnerability index ranks Calgary as the second-most tariff-exposed city in Canada.
What happens next
Hours after the tariffs began, the Prime Minister announced Canada will match them dollar for dollar starting September 8, 2026 — see our companion piece on the coming counter-tariff list. Law-firm analyses also anticipate US court challenges to the novel Section 338 authority, particularly after the Supreme Court struck down the IEEPA tariff program in February 2026. We will track both on the Canada–US Tariff Tracker.
TariffCleared is an independent publisher. Nothing on this site is legal, customs, or financial advice. Confirm against the linked primary sources or consult a licensed professional.