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

Donald 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.

Tariffs 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.

The 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.

• Email: dtrainer@postmedia.com