Fresh US tariffs on Canada exclude potash

US President Donald Trump has utilised an obscure section of the 1930 Tariff Act to impose fresh tariffs of 50% on imports of multiple goods from Canada. The tariffs have been put on products such as consumer items and some industrial goods, though crucially they exclude critical minerals including potash. The new duties are reportedly set to enter into force in 30 days and mark a further deterioration of relations between the US and Canada.

The 1 July soft deadline for the renewal of the US-Mexico-Canada trade agreement (USMCA) passed without an extension being made by the three North American countries. The US has chosen not to extend the deal, paving the way for further negotiations on terms.

US President Donald Trump had previously said that he would not renew the US-Mexico-Canada (USMCA) trade agreement. A period of rolling annual reviews of the deal is now likely.

Trump has on multiple occasions in the past threatened to scrap the USMCA, which he himself signed during his first term as President in 2020 as a replacement for the North American Free Trade Agreement (NAFTA).

Options on the table for the three parties had included extending the treaty for 16 years, agreeing to review it annually, or fully withdrawing from it after serving a six-month notice period.

Multiple Canadian goods, including potash, are currently shielded from US import tariffs due to their USMCA status. If the USMCA is revoked, tariffs on potash imports from Canada could materialise. Potash was exempt from the US reciprocal tariffs introduced in Trump’s second stint as president.

Roughly 47% of Canada’s 2025 potash exports were to the US, down slightly from 53% in 2024. However, in January-May 2026, the proportion increased to around 52%, according to Trade Data Monitor.