OTTAWA/NEW YORK – Canadian Prime Minister Mark Carney said on Monday that the US administration's announced intention to impose a new 50 percent tariff on a broad range of Canadian goods is "the latest in a series of unilateral US trade actions in direct violation of the Canada-United States-Mexico Agreement (CUSMA)".
In a statement, Carney said that the US has been "transforming all of its trade relationships, including those covered under CUSMA, over the past 18 months", and Canada has made a series of detailed and comprehensive proposals to resolve the dispute and modernize the CUSMA.
"We stand ready to intensify those discussions in the coming weeks," said Carney.
The prime minister said that Canada believes in the benefits of free and fair trade and that the trade dispute has raised costs for families, particularly in the US.
He voiced Canada's readiness to engage intensively to address "outstanding issues with the United States to the mutual benefit of our citizens".
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On Monday, US President Donald Trump signed three proclamations to impose an additional 50 percent tariff on certain Canadian goods, saying Canada was discriminating against US commerce.
The additional 50 percent ad valorem duties on certain dairy products, alcoholic beverages, motor vehicles and related goods will become effective as of 12:01 am Eastern Time (0401 GMT) on Aug 19, according to documents posted on the White House website. Energy products, potash, fish and critical minerals will be exempt from the tariff.
In a proclamation concerning motor vehicles and related products, Trump said Canada has maintained a 25 percent tariff on imports of US motor vehicles that do not qualify for preferential, duty-free treatment under the United States-Mexico-Canada Agreement (USMCA) since April 9, 2025. Canada also maintains a tariff-rate quota on US motor vehicles that qualify for preferential, duty-free treatment under the USMCA.
Following the implementation of the tariff measures, Canadian imports of US motor vehicles fell by about 22 percent, from approximately $25.9 billion between April 2024 and March 2025 to around $20.3 billion during the same period of 2025-2026, according to the proclamation.
"Canada only applies the tariff scheme to US-origin motor vehicles," Trump said, claiming that Canada's tariff policy discriminates against the US commerce and puts American businesses at a disadvantage compared with those of other countries.
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In early July, the US declined to renew the USMCA at the agreement's mandatory six-year joint review. The trade pact will now be subject to annual reviews, potentially through 2036, unless all three parties agree to extend it.
