United States Imposes 50% Tariffs on Certain Canadian Goods Following Failed Negotiations

On Saturday, August 22, the United States imposed 50% tariffs on $20 billion worth of Canadian goods. Despite hopes of reaching a deal, negotiations between the United States and Canada broke down, and the 50% tariffs took effect at 12:01 a.m. EDT. Both sides blamed last-minute changes as contributing to the collapse of the agreement.

Additionally, on Monday morning, August 24, President Trump announced on Truth Social that the tariffs on cars, trucks, automotive parts, and steel (presumably the Section 232 tariffs) will be increased to 50% on January 1, 2027. No additional details are available at this time.

Canadian Prime Minister Mark Carney said during a press conference that the country will “match Washington’s new tariffs dollar for dollar,” and that Canada will enact retaliatory tariffs on the United States beginning on September 8. While no details have been released at this time, PM Carney said they will be released in the “coming days” and that the tariffs will apply to goods like steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Background:

Previously, on August 19, 2026, President Donald Trump issued a Presidential Proclamation delaying implementation of the Section 338 tariffs on $20 billion worth of Canadian goods until August 22, 2026. The three-day extension was meant to yield enough extra time for U.S. and Canadian officials to make a deal. While the deal had been looking promising in the lead-up to the deadline, currently, no further talks have been scheduled.

Section 338 of the Tariff Act of 1930 authorizes the President to take such action when a foreign country is found to impose unreasonable, unequal, or discriminatory trade practices that disadvantage U.S. products or commerce. Notably, the Section 338 tariffs apply to covered goods regardless of whether they qualify for preferential treatment under the U.S.-Mexico-Canada Agreement (USMCA). This is the first time a president has invoked this authority.

Section 338 Action on Motor Vehicles: 

• Proclamation here | Annex 1 here | Annex II here 

Section 338 Action on Alcoholic Beverages: 

• Proclamation here | Annex 1 here | Annex II here

Section 338 Action on Dairy: 

• Proclamation here | Annex 1 here | Annex II here

Stacking:

The new tariffs will stack on top of all other tariffs, except for products subject to Section 232 tariffs and the WTO Agreement on Trade in Civil Aircraft. USMCA-qualifying goods are NOT excluded.

To read the White House Fact Sheet, click here.

To read the Customs and Border Protection guidance, click here. 

To read Prime Minister Carney’s statement, click here.

The RV Industry Association will continue to provide information on any negotiations as it becomes available. For a comprehensive overview of tariffs currently enacted, view the tariff tracker. 

For additional information, please contact Samantha Rocci, Director of Federal Affairs (srocci@rvia.org).