Trump’s 50% Tariffs on Canadian Goods Set to Take Effect Saturday

President Trump’s 50% tariffs on a range of Canadian goods are set to take effect early Saturday morning. The deadline hits at 12:01 a.m. ET, unless the U.S. and Canada finalize a trade deal before then.

This is not the first deadline for these tariffs. Trump had originally set the duties to begin earlier in the week. He pushed the date back by three days to give both sides more time to turn an agreed-upon deal into a formal legal agreement.

The tariffs cover close to $20 billion worth of Canadian imports. The list of affected goods is wide. It includes dairy products, honey, whey protein, and molasses. Alcoholic drinks like whiskey and vodka are also on the list, along with everyday items such as hockey sticks and wine.

Unlike some of Trump’s other tariffs, these duties do not carry exemptions for goods that comply with the Canada-U.S.-Mexico Agreement. That means even products that would normally qualify for preferred trade treatment are not protected this time.

How the Tariff Fight With Canada Started

Trump first announced this round of tariffs in July. He said Canada had unfairly treated U.S. exports in three areas: dairy, alcohol, and automobiles. Canada was also one of the only countries, besides China, to retaliate against Trump’s earlier tariffs, though it later rolled back most of those measures.

The tariffs are being imposed under a law known as Section 338. This statute lets the president impose duties when a foreign country is found to discriminate against U.S. goods. It caps tariffs at 50% and allows them to take effect 30 days after being announced. The law has not been used in this way for more than 70 years.

Trump had already agreed once to delay the tariffs. Just under two hours before the earlier deadline was set to hit, the U.S. and Canada reached a last-minute deal to push the date back. That gave negotiators extra time to work out the details of a longer agreement.

Where the US-Canada Trade Talks Stand Now

Canada-U.S. Trade Minister Dominic LeBlanc said talks were continuing right up to the new deadline. Canada’s chief negotiator, Janice Charette, has met several times this month with U.S. Trade Representative Jamieson Greer in Washington.

LeBlanc said Canada is working toward a deal that serves the country’s economic interests and protects Canadian workers. Officials on both sides have stayed quiet about the specific sticking points still on the table. Reports point to Trump’s existing tariffs on Canadian steel, aluminum, and lumber as a central concern in the talks.

Business groups have warned that the tariffs could hurt sales badly if they take effect. Some companies say the threat alone has already changed how U.S. buyers are placing orders, with some holding off until there’s more certainty.

What Happens If Saturday’s Deadline Passes

If no deal is reached by 12:01 a.m. ET Saturday, the 50% tariffs will switch on automatically. Because there is no time limit written into this section of the law, the tariffs could stay in place indefinitely unless Trump or a future president chooses to remove them.

The economic impact would land hardest on businesses that rely on trade between the two countries. Many of the targeted goods come from small and mid-sized companies rather than large industrial exporters.

FAQ

What percentage are the new tariffs?

The tariffs are set at 50% on a range of Canadian goods.

When do the tariffs take effect?

They are set to begin at 12:01 a.m. ET on Saturday, unless a deal is reached first.

How much trade do the tariffs affect?

The tariffs apply to close to $20 billion worth of Canadian imports.

Why did Trump target Canada with these tariffs?

He said Canada discriminated against U.S. exports in the dairy, alcohol, and auto sectors.

Is there a way to stop the tariffs before Saturday?

Yes. If the U.S. and Canada finalize a trade agreement before the deadline, the tariffs would not take effect.

What law is being used to impose these tariffs?

The tariffs are being imposed under Section 338, a trade law that caps duties at 50% and lets them take effect 30 days after being announced.