Trump Raises Trade Pressure on Canada With 50% Tariff

Trump Raises Trade Pressure on Canada With 50% Tariff

US President Donald Trump has announced an additional 50 per cent tariff on Canadian imports, deepening tensions between Washington and Ottawa over trade.

The new tariff will take effect in 30 days and will apply to goods covered by the Canada-United States-Mexico Agreement, known as CUSMA.

The White House said the measure was in response to what it described as “retaliatory” and “discriminatory” actions taken by Canada against American products.

Trump signed three executive orders citing Canada’s restrictions on American alcohol, retaliatory tariffs on US-made vehicles and auto parts, and quotas on American dairy imports under Canada’s supply management system.

The White House accused Canada of choosing retaliation over negotiations and said the new tariff was intended to address what it called discriminatory trade practices.

The tariff will be imposed under Section 338 of the US Tariff Act of 1930, a provision that allows the president to impose duties on goods from countries deemed to discriminate against American commerce.

A senior US administration official said the provision had never previously been used for this purpose.

Energy products, critical minerals, potash, fish and goods already covered by certain US tariffs, including steel, aluminium and automobiles, will be exempt.

However, Canadian alcohol, dairy and agricultural products, furniture, paper, cement, clothing, textiles and hockey equipment are among the goods expected to be affected.

A US administration official described the measure as a defensive response rather than a trade war.

Canadian Prime Minister Mark Carney defended his government’s actions, saying Canada had merely matched US tariffs on automobiles and had taken measures to protect its workers, farmers, businesses and families.

Carney did not immediately announce whether Canada would retaliate against the new tariff.

“Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families,” he said.

Ontario Premier Doug Ford, however, called for a direct response if the US proceeds with the tariff.

“Canada should respond tariff for tariff, dollar for dollar,” Ford said.

The latest move further complicates trade talks between the two countries. Earlier this month, the United States declined to renew the CUSMA agreement for another 16 years, leaving the deal subject to annual reviews and scheduled to expire in 2036 unless renewed.

The Canadian Chamber of Commerce described the new tariff as a “regrettable escalation” but said the 30-day period could still provide an opportunity for both sides to make progress.

The latest development has raised fresh concerns about the impact of the worsening trade dispute on businesses, workers and consumers in both countries.