U.S. Announces 50% Tariffs on Canadian Goods
The Trump administration announced Monday that the United States will impose additional 50% tariffs on a range of Canadian imports, citing what it describes as discriminatory trade practices affecting American products and industries.
President Donald Trump signed three proclamations covering motor vehicles, alcoholic beverages, and dairy products. Administration officials said the measures will apply to various Canadian goods, including wine, hockey sticks, and cement. The tariffs are scheduled to take effect 30 days after the proclamations were signed.
Officials said the duties will apply to all products covered by the proclamations, including goods that might otherwise qualify for preferential treatment under the United States-Mexico-Canada Agreement. The administration is using Section 338 of the Tariff Act of 1930, a rarely invoked provision allowing tariffs of up to 50% against countries found to discriminate against U.S. commerce.
Ontario Premier Doug Ford said Canada should respond with matching tariffs if the measures proceed. The Canadian Embassy in Washington did not immediately comment, according to CNBC.
The announcement adds to recent trade tensions between the neighboring countries. The United States imposed tariffs on Canadian products last year, prompting retaliatory action from Ottawa. Earlier in July, the administration said it would not renew the USMCA through the existing process and instead initiated annual reviews, creating uncertainty about the agreement’s future.
Trump also recently linked smoke from wildfires in northwestern Ontario to economic costs in the United States and suggested those costs could influence tariffs. However, a senior administration official said the newly announced duties are unrelated to the wildfires, while noting that the president has requested policy options on that issue.
Section 338 has reportedly not been publicly used since 1949, making the latest action an unusual use of longstanding presidential tariff authority. Its implementation could shape bilateral negotiations and future decisions by both governments.