On August 18, 2026, President Trump issued a proclamation pausing for three days the 50% tariffs on certain Canadian imports that had been set to take effect August 19. The duties — imposed under Section 338 of the Tariff Act of 1930 in three separate July 20 proclamations — targeted Canadian goods tied to disputes over alcoholic beverages, dairy, and motor vehicles, and covered approximately $20 billion in annual U.S. imports from Canada. The administration cited Canada's commitment to remove the disputed practices as justification for the brief pause. Section 338, a rarely invoked statute, allows the president to impose retaliatory duties of up to 50% on goods from countries found to discriminate against U.S. commerce; legal analysts noted it had not been used this way in at least 70 years. The three-day reprieve did not produce a deal: talks collapsed the night of August 21, the tariffs took effect August 22 as rescheduled, and Canadian Prime Minister Mark Carney announced retaliatory tariffs on more than 700 American products, effective September 8, 2026.