The US just threatened new tariffs on Canada. Here’s why they may not work.

Econographics

July 22, 2026 • 2:16 pm ET

Madeline Chalecki

The Trump administration may be running into its own tariff wall. On Monday evening, the White House announced 50 percent tariffs on certain Canadian goods by invoking Section 338 of the Trade Act of 1930—a never-before-used statute that allows for tariffs of up to 50 percent on countries that engage in discriminatory practices against the US.

But here’s the catch: the administration’s claims of unfair treatment by Canada are, in part, the result of its own tariffs on Canadian goods. The past year has shown that changes in trade flows have been closely tied to US tariff policies—and those policies have contributed to a cycle in which each Canadian response becomes a justification for even greater US pressure.