US President Donald Trump on Monday imposed 50% tariffs on nearly $20 billion worth of Canadian imports, accusing Canada of discriminating against American-made cars, alcohol and dairy products.
The new tariffs, which will take effect in 30 days, apply to a wide range of products including wine, cement, ice hockey equipment, dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs.
Trump invoked Section 338 of the Tariff Act of 1930, which allows a US president to impose punitive tariffs of up to 50% on trading partners deemed to have discriminated against American goods. It is the first known use of the law in nearly 100 years.
The Office of the US Trade Representative said the tariffs cover nearly $20 billion in Canadian imports, representing about 5.2% of the $382 billion worth of goods the US imported from Canada in 2025.
“While the Administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect U.S. industry in national-security sensitive sectors,” US Trade Representative Jamieson Greer said.
Canadian Prime Minister Mark Carney said his government had made comprehensive proposals to resolve the dispute, maintaining that previous US tariffs violated the North American trade agreement.
“This trade dispute has raised costs for families, particularly in the U.S.,” he said. “Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.”
The Trump administration has repeatedly criticised Canada and China for introducing retaliatory measures against US tariffs imposed since Trump’s return to office last year.
Greer has also left Canada out of ongoing talks with Mexico on proposed changes to the US-Mexico-Canada Agreement, while holding bilateral discussions with Mexican officials this week.
Trump and Carney met during the FIFA World Cup final in New Jersey on Sunday, where Trump also called on Canada to tackle wildfires sending smoke into parts of the United States. Last week, he threatened to add the “incalculable cost” of dealing with the pollution to existing tariffs on Canadian goods.
Faridah Abdulkadiri
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