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Economic Viewpoint

New Tariffs: Still Many Unknowns

July 21, 2026
Jimmy Jean, Vice-President, Chief Economist and Strategist • Randall Bartlett, Deputy Chief Economist
Florence Jean-Jacobs, Principal Economist • Sonny Scarfone, Principal Economist

Amid ongoing North American trade negotiations, the US president is ratcheting up pressure by threatening to impose new tariffs on Canada under Section 338 of the Tariff Act of 1930. The US administration is alleging that Canada has discriminated against US exports of autos, alcohol and dairy. This is a response to Canada’s retaliation against President Trump’s prior trade barbs. As designed, the latest round of tariffs targeting Canada are likely to have a noticeable impact on the Canadian economy, particularly through trade and capital formation channels.

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NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.