ECONOMIC BRIEFING
Tariffs Briefing J U LY 2 8 , 2 0 2 6 - U P D AT E S T O G L O B A L TA R I F F S A N D N E W L E V I E S O N C A N A D A
GEORGIA CHAMBER OF COMMERCE
Tariffs Briefing
Updates to Global Tariffs and New Levies on Canada The Latest On Friday, the Trump administration implemented new duties on imports from more than 60 countries, including Canada, Mexico, China, and the European Union. The countries affected will face a tariff of 10% to 12.5% on all goods, accounting for 99% of U.S. trade. To implement these tariffs, the administration invoked Section 301 of the Trade Act of 1974, citing administration claims that tariffed countries have failed to take steps to address coercive labor practices on goods in their markets. These new tariffs serve largely as a replacement of the Section 122 tariffs that were set to expire on Friday, July 24th. Earlier in the week, President Trump signed three proclamations imposing an additional 50% tariff on separate baskets of Canadian goods beginning August 19th. The measures respond to the Trump Administration’s view on Canadian treatment of U.S. motor vehicles, alcoholic beverages, and dairy products. They apply to covered goods, even when those goods qualify under the United States-Mexico-Canada Agreement (USMCA).
U.S. Canada Tariff Actions Summarized: The proclamations for these new tariffs impacting Canada invoke Section 338 of the Tariff Act of 1930, marking the first use of Section 338 in nearly a century. The Office of the U.S. Trade Representative estimates that the three tariff baskets together cover nearly $20 billion in Canadian imports, or approximately 5.2% of U.S. goods imports from Canada in 2025.
Dispute
Canadian measure cited
U.S. export impact
Covered Canadian imports, selected examples*
Motor vehicles
25% tariffs and company-specific tariff-rate quotas that differ from treatment of other suppliers.
Down 22%; $25.9B to $20.3B
A broad multi-sector basket including cement, chemicals, plastics, paper, apparel, machinery, electronics, furniture, toys, and sporting goods.
Alcoholic beverages
Provincial and territorial purchase, distribution, and retail bans; only Alberta and Saskatchewan later lifted theirs.
Down 81%; $718M to $137M
Beer, wine, cider, distilled spirits, plus selected wood, paper, and hockey products.
Dairy
USMCA cheese quota rules exclude retailNot quantified in ers, while comparable EU quota rules permit proclamation retailer access.
Milk powders and concentrates, whey, dairy proteins, lactose, casein, selected syrups, bakery mixes, and related products.
*Note: This is a short summary of selected products to which the new tariffs apply. For a full list, please see Annex II attached to the Presidential Proclamation.
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Tariffs Briefing
Why It Matters: NEW TARIFFS TO REPLACE SECTION 122 This new round of tariffs impacting more than 60 nations and 99% of U.S. trade ensures far reaching levies remain in place despite the current mechanism expiring. The unpredictability caused by this shift continues to cause instability for businesses and consumers as new negotiations will likely occur as a result. U.S. TARIFFS ON CANADA Canada is Georgia’s largest export market, receiving $6.8 billion in Georgia exports in 2025. Canada is also Georgia’s fourth-largest total trade partner, accounting for $13.3 billion in total two-way goods trade in 2025. •
Import cost risk. Georgia businesses importing covered Canadian inputs or finished goods may face substantial increases in landed costs beginning August 19.
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Broad sector exposure. The tariff baskets extend beyond the three named disputes. Potentially affected Georgia industries include construction materials, food processing, beverage distribution and hospitality, chemicals and plastics, forest products, apparel, machinery and electronics, furniture, retail, and logistics.
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USMCA is not a shield. A covered Canadian product remains subject to the Section 338 duty even if it satisfies USMCA rules of origin. Businesses should not assume an existing USMCA certification avoids the new tariff.
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Entry timing matters. The duties apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after August 19.
Strategic Considerations for Georgia Businesses: •
Classify exposure. Identify Canadian-origin imports and determine whether these products fall under the new tariff rules.
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Confirm any applicable exceptions. Review whether the product already falls under another exclusive tariff section, qualifies as an exempt civil aircraft article, or enters under an eligible Chapter 98 provision.
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Evaluate contracts and cost scenarios. Review contracts with Canadian suppliers and customers to understand how the new tariffs affect pricing, responsibilities, and cost allocation. Evaluate options for accelerated entry, alternative sourcing, and inventory management as the situation develops.
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Monitor implementation. Watch for CBP instructions, Federal Register corrections, negotiations with Canada, product exclusions, and the potential for Canadian retaliation before the August 19 effective date.
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Tariffs Briefing
Learn more about Georgia’s Top Trading Partners Here Closing The August 19 effective date provides a 30-day window for negotiations between the United States and Canada. Discussions are expected to continue as both countries work to resolve the underlying trade disputes before the August 19 implementation date.
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