Canada under tariff attack
In 10 days, Canada will face sweeping US tariffs of up to 50 percent on key imports. When a US president reaches for a long forgotten law from the Great Depression to strike at his closest ally, and a truck becomes the only home for a driver crushed by rising prices, global trade ceases to be an abstraction. It becomes a reality where every new percentage point of tariff echoes in the wallets of ordinary people and sends shivers through boardrooms on both sides of the border.
Section 338 of the Tariff Act of 1930, unused for nearly a century, has suddenly become a weapon in a trade war that threatens to unravel one of the world's most integrated supply chains. And while politicians argue over fairness, Canadian families are already paying the price of this uncertainty – moving into their trucks to make ends meet.
President Donald Trump announced the move on July 20 under Section 338 of the US Tariff Act. The new policy targets a broad range of Canadian imports, including wine and auto parts, worth approximately $20 billion. Goods covered by the existing trade agreement – the United States Mexico Canada Agreement – will not be exempt. Analysts warn the tariffs will further strain household finances already under pressure. For some, it has become personal. One Canadian truck driver told how rising prices forced him to move into his truck to reduce debt. "Prices on everything are through the roof for no reason. It's the same product, but everything has doubled or tripled in price. I had to move out of my apartment after seven years of living there.
I moved out just five days ago to reduce my debt. Now I live in my truck," the Canadian driver said. Businesses across Canada are also reporting mounting pressure. Tess Patterson, a wine club manager, said it is difficult for businesses to shield customers from price hikes. "We really don't want to pass these costs on to our consumers. However, you know, over time they gradually increase. So it's very difficult for our consumers to buy and purchase our products, and that's not what we want," Patterson said.
The tariffs are set to take effect on August 19, 2026, unless alternative arrangements are reached during the 30 day window. Trump accused Canada of discriminating against US commerce in three sectors: automotive, alcoholic beverages and dairy. The tariffs will cover a wide range of goods – from wine and hockey sticks to cement, furniture and toilet paper. Notably, this is the first time Section 338 has ever been invoked in US history.
Canadian Prime Minister Mark Carney said he is considering a "full range" of retaliatory measures, including possible counter tariffs, and pledged to do "whatever it takes" to defend national interests. In response to earlier US tariffs, nearly all Canadian provinces except Alberta and Saskatchewan have banned the sale of American alcohol. Ontario Premier Doug Ford called for a "dollar for dollar" response, while the opposition Conservatives declared that "Canadians are not a punching bag". Trump, for his part, said that Canada "needs us to survive".
As CCTV+ reports, the new tariffs are not just another round in the trade conflict but a stress test of the relationship between two countries that for decades have been seen as a model of good neighbourly economic partnership – and now every Canadian and American will feel the consequences of this decision in their own lives.
