President Trump applied Section 338 of the Tariff Act of 1930 to impose 50% tariffs on $20 billion of Canadian goods one week before August 29, 2026, citing alleged discrimination against U.S. dairy, auto, and beverage exports. Ottawa responded with equivalent retaliatory measures. The provision, part of the Smoot-Hawley Act and never previously used or litigated, has drawn varied interpretations regarding executive authority and trade impacts.