U.S. president Donald Trump has imposed a 50% tariff on a wide range of Canadian goods, marking a major escalation in trade tensions between the two neighbouring countries.
The duties, which will take effect in 30 days, will cover consumer products such as wine and hockey sticks as well as industrial goods including cement. Energy, potash, critical minerals, and fish will be exempt.
Trump said the tariffs were retaliation for Canada’s “unequal treatment” of American cars, dairy products and alcohol.
The measures were introduced under Section 338 of the 1930 Tariff Act, a rarely used law covering trade discrimination. Trump turned to the provision after the U.S. Supreme Court ruled in February that he had exceeded his authority by imposing sweeping tariffs under emergency powers.
The tariffs will apply even to products covered by the United States-Mexico-Canada Agreement (USMCA), according to the White House.
Three proclamations issued by Trump cited long-running American complaints about Canadian trade policy. These include taxes on U.S. vehicles and parts not covered by the USMCA, restrictions on dairy imports and a boycott of American alcohol by most Canadian provinces.
Canada’s supply management system limits foreign dairy imports, with tariffs of up to 300% imposed on products exceeding agreed quotas. Canadian provinces introduced their boycott of U.S. alcohol during an earlier trade dispute last year.
The White House announcement signals a breakdown in negotiations between Washington and Ottawa, although Canadian prime minister Mark Carney said his government remained ready to “intensify” talks in the coming weeks.
Carney accused the United States of taking unilateral action in violation of the USMCA. He also referred to “threats to Canadian sovereignty,” possibly alluding to Trump’s repeated suggestions that Canada should become America’s 51st state.
The latest measures come on top of existing U.S. tariffs of between 15% and 50% on Canadian steel, aluminium and copper, a 35% duty on Canadian softwood lumber and a 25% tariff on non-American components in vehicles.
Ontario premier Doug Ford called for an aggressive response, saying Canada should retaliate “tariff for tariff, dollar for dollar” if the duties go ahead.
Canada imposed a 25% tariff on approximately C$30 billion worth of American goods in 2025. Carney later removed some of the measures, but Canada continues to impose tariffs on selected U.S. steel, aluminium, and vehicle imports.
