OTTAWA — Canadian businesses are preparing for a possible new round of U.S. tariffs on exports as a deadline approaches for duties of up to 50% on a range of Canadian goods, while negotiators from both countries continue efforts to reach an agreement.
U.S. President Donald Trump’s administration has scheduled additional 50% tariffs on certain Canadian products to take effect on Aug. 19. The duties would apply to specified goods including dairy products, alcoholic beverages, motor vehicles and other Canadian exports, according to White House proclamations issued in July.
The measures are expected to affect about $20 billion of Canadian exports to the United States, equivalent to roughly 5.2% of Canada’s exports to its largest trading partner in 2025, according to Reuters. Unlike some previous measures, the new tariffs would apply to covered products even when they qualify for preferential treatment under the Canada-United States-Mexico Agreement, or CUSMA.
Canadian companies have been reviewing supply chains, pricing and U.S. market exposure as the deadline nears. The Manitoba Chambers of Commerce said the measures were creating uncertainty for businesses and could raise costs and affect investment and hiring decisions.
The tariffs come as Canadian and U.S. officials hold intensive negotiations aimed at preventing their implementation. Canadian Trade Minister Dominic LeBlanc and Chief Trade Negotiator Janice Charette have been meeting U.S. Trade Representative Jamieson Greer and other officials in Washington.
Canada has discussed potential concessions involving U.S. automobiles, dairy access and the return of American alcoholic beverages to Canadian stores, while seeking relief from existing U.S. tariffs on Canadian steel and aluminum, according to a source cited by Reuters. Some of those issues, including alcohol distribution, involve provincial jurisdiction.
On Wednesday, Canadian officials expressed dissatisfaction with the latest U.S. proposal to reduce some tariffs, according to CBC News. The two sides remained in negotiations, with the United States pressing Canada to address what Washington describes as discriminatory treatment of American goods.
Prime Minister Mark Carney has said Canada remains engaged in negotiations while preparing to protect Canadian workers and businesses. The government has also said it is committed to defending Canadian economic interests as the tariff dispute continues.
The new U.S. duties remain scheduled to take effect at 12:01 a.m. Eastern time on Aug. 19 unless the administration modifies or withdraws them.
