Overview
- Negotiators from both governments are holding intense, last‑minute talks to try to stop 50% duties set to begin at 12:01 a.m. on Wednesday, Aug. 19.
- The tariffs were authorized under Section 338 of the Tariff Act of 1930, a Smoot‑Hawley‑era provision that has never been used and that legal experts say would prompt immediate court challenges if imposed.
- The duties target roughly $20 billion of Canadian exports, including hockey equipment, some clothing, wines, dairy items and building materials, representing about 5% of Canada’s exports to the United States.
- Bargaining has focused on sectoral trade concessions with the U.S. pressing Canada to lift provincial liquor bans and change dairy quota rules while Canada seeks cuts to U.S. auto, steel and aluminum tariffs and relief on softwood lumber.
- If talks fail the tariffs would raise costs for consumers and businesses, risk supply‑chain disruption across North America and reshape leverage in ongoing USMCA negotiations and U.S. domestic politics.