Why Trump’s new Canada tariffs target autos, alcohol and cheese

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Ottawa argues measures merely answer tariffs the U.S. imposed first You can save this article by registering for free here. Or sign-in if you have an account.U.S. President Donald Trump's latest tariffs are scheduled for Aug. 19 and cover nearly US$20 billion in imports. Photo by Kevin Dietsch/Getty ImagesDonald Trump’s latest tariff move reaches far beyond cars, alcohol and cheese. But those three trade fights are why the White House says it is imposing an additional 50 per cent duty on hundreds of Canadian products.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountTariffs are scheduled for Aug. 19 and cover nearly US$20 billion in imports. The lists include wine, hockey sticks, cement, plywood, honey, toys and paper products. Listed goods face the new levy even when they qualify under the Canada-United-States-Mexico-Agreement (CUSMA). Energy, potash, fish and certain critical minerals are exempt, as are products already covered by separate U.S. tariffs, including vehicles, steel and aluminum.Auto disputes are rooted in measures Canada introduced after President Trump imposed U.S. vehicle tariffs in 2025. Washington objects to Canada’s retaliatory tariffs and import quotas, including reductions aimed at automakers that shifted production out of Canada. Prime Minister Mark Carney says Canada’s response matched the American action, which Ottawa considers a violation of CUSMA.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThe alcohol fight largely plays out through provincial liquor systems. Most provinces and territories pulled American products after the earlier U.S. tariffs. Alberta and Saskatchewan reversed course in June 2025, but Ontario and many others kept their restrictions. The White House says Canadian imports of U.S. alcohol fell about 81 per cent, or US$582 million, over the following year.The dairy complaint is more technical. Canada uses quotas that allow set amounts of cheese to enter at reduced duties. Washington argues that retailers can access Canada’s quota for European cheese but not the corresponding CUSMA quota for American cheese, leaving U.S. exporters at a disadvantage. The dispute cuts directly into Canada’s supply management system, a recurring source of friction with Washington.Carney called the announcement another unilateral U.S. trade action. He says Canada has submitted detailed proposals, is ready to intensify negotiations and will support affected workers and businesses.CUSMA has not expired, even though the U.S. declined to extend it during this month’s review. The agreement remains in force while annual reviews continue.Announcements can still be amended or suspended before Aug. 19, leaving both governments a month to decide whether this becomes another negotiating threat or a much broader barrier for Canadian exporters.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.