Fact Sheet: President Donald J. Trump Responds to Canada’s Retaliation

COUNTERING CANADA'S LATEST RETALIATION AGAINST AMERICAN EXPORTS: Today, to address Canada's increased discrimination against U.S. commerce, President Trump signed five Proclamations pursuant to Section 338 of the Tariff Act of 1930 to ban certain products from Canada and modify the scope of the tariffs on certain Canadian products previously announced on July 20, 2026. President Trump is taking decisive and appropriate action to respond to Canada's additional retaliation and continued discriminatory treatment of crucial American exports.

• After breaking off trade talks with the United States last month, today Canada imposed new retaliatory tariffs on about $20 billion of U.S. exports, including steel, dairy, and agricultural equipment.
• Because Canada maintained and in fact increased its discrimination against U.S. commerce with respect to U.S. alcoholic beverages, President Trump, under Section 338, imposed import bans on certain Canadian alcohol and other products that were subject to the 50 percent tariffs imposed under Section 338 in Proclamation 11046.
• Moreover, because Canada maintained its discrimination against U.S. commerce with respect to dairy, President Trump, under Section 338, imposed import bans on certain Canadian dairy and other products of Canada that were subject to the 50 percent tariffs imposed under Section 338 in Proclamation 11047.
• To offset the burden to U.S. commerce while better serving the public interest, President Trump is also modifying the July 20, 2026 actions by removing certain products, such as rock salt and cement, from the scope of the Section 338 tariffs and replacing those products with new ones, ranging from all-terrain vehicles (ATVs) to additional dairy products.
• These Section 338 tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA) and apply in addition to tariffs imposed under Section 232 of the Trade Expansion Act of 1962.
• The import bans will take effect on September 29, 2026, and the product additions and removals will take effect on September 15, 2026.

PROTECTING AMERICAN WORKERS AND ENSURING FAIR TRADE: President Trump is taking decisive action to address Canada's additional and continued retaliation and discrimination against U.S. commerce to protect American farmers, manufacturers, and workers.

• Section 338 empowers the President to exclude products from entering the U.S. market if a foreign country maintains or increases its discriminatory practices.
• Based on Canada's most recent escalation against U.S. alcoholic beverages, and continued retaliation and discrimination against U.S. commerce with respect to U.S. dairy and motor vehicles, President Trump has determined that it is necessary and appropriate to ban certain Canadian products from entering the U.S. market.
• President Trump is also refining the scope of the July 20, 2026, actions to better serve the public interest, and to ensure they continue to effectively offset the burden or disadvantage to U.S. commerce from Canada's discriminatory measures.
• The additional Section 338 import bans and tariffs imposed today on certain Canadian products further safeguard American workers from Canada's discriminatory or unreasonable and unequal practices.

CONTINUING AMERICA FIRST TRADE POLICY: President Trump is using all the tools at his disposal to restore reciprocity in our bilateral trade relationships and protect the economic prosperity and national security of the American people.

• By imposing tariffs to address non-reciprocal foreign trade practices, President Trump is incentivizing companies to reshore jobs and production lines back to American soil. Recent new investments part of over $11 trillion in total investments since President Trump returned to office include:
  • American yogurt maker Chobani is investing $1.2 billion into a production plant in Pennsylvania, with plans to launch a new high-protein milk next summer.
  • British automaker Rolls-Royce completed a $1 billion investment into its Indiana facility that tests and builds engines for the U.S. Air Force.
  • Swiss pharmaceuticals company Octapharma is investing $1.5 billion to establish its first U.S. biopharmaceutical manufacturing facility in South Carolina.
• In August 2026, for the eighth consecutive month, economic activity in manufacturing continued to expand under President Trump's leadership, and in July 2026, U.S. manufacturing activity expanded at its fastest pace in over four years.
• Additionally, the President has directed the U.S. Trade Representative and the Administrator of the General Services Administration (GSA) to remove $50 billion dollars' worth of Canadian-origin products from GSA's Multiple Award Schedules.
• While President Trump continues to lock in fair and reciprocal trade deals with nearly twenty trading partners across the globe, Canada continues to retaliate against the United States for its efforts to correct trade imbalances and protect American workers, farmers, and businesses.
• Over the past year and a half, only two countries have chosen to retaliate against President Trump's tariffs rather than negotiate a deal with the United States: The People's Republic of China and Canada.
• Today's action reflects President Trump's continued efforts to defend American workers and ensure fair trade, offsetting the burden and disadvantage on U.S. commerce from Canada's discriminatory treatment.