When the US had decided on July 1, 2026 not to renew the USMCA, we had warned of more uncertainty for Canada. Unfortunately, most Canadian media had shrugged off the lack of a deal by saying, “It just means we revert to annual reviews – no biggie.”
Well, without that deal, the US was free to use a legal loophole based on discrimination to hit Canada with new, massive 50% tariffs on top of the obligations under USMCA.
These new tariffs use proclamations that are in response to Canada’s tariffs to then justify tariffs on other products.
These new tariffs include:
• Alcoholic Beverages Proclamation: Covers beers, wines, spirits, and other alcoholic products (Chapter 22 HS codes), plus additional items including hockey sticks and certain wood and paper products.
• Motor Vehicles Proclamation: Covers a broad list of goods, including many agricultural, chemical, plastic, wood, furniture, machinery, and consumer products.
• Dairy Proclamation: Covers dairy products, milk, cream, whey, sugars, and related items.
All listed Canadian-origin goods will be subject to 50% additional duties, effective August 19, 2026.
Dr. Sylvain Charlebois of Dalhousie University, aka The Food Professor, has stated it best, “With more tariffs hitting Canada, I’ve said it before and I’ll say it again: there is no trade war to win. “Elbows up” won’t work. You cannot outmuscle a country that represents roughly a quarter of the global economy. You need to work with it—even if you despise its leader. Mexico chose engagement and is now in a better position because of it.
As for Canada, we chose pain.”
US Trade Representative Ambassador Greer explains the tariffs on a set of Canadian imports: “They banned the sale of U.S. liquor and other booze on Canadian shelves. They capped and limited the amount of autos that could be shipped [from] the United States from companies who were re-shoring to the U.S., and they also continue to maintain limited space to market access for U.S. dairy … and so it was a natural consequence, after a year of these measures being in place… for POTUS to take action.”
As we have maintained since April 2025, the Canadian economy would gain significant stability from a robust trade agreement with its largest trading partner, provided the government can overcome its ineffective negotiation efforts.
Until then, perpetual, compounding uncertainty is the new norm.
Read the history of these events here:
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Luke Dalinda, Realtor. Royal LePage Real Estate Services Ltd., Brokerage.
View all current and past Palace Place listings for sale here.