US Imposes 50% Tariffs on Canadian Goods, Citing 'Discriminatory Treatment'

US President Donald Trump's administration on Monday announced it was imposing 50% tariffs on a wide range of Canadian goods.

The White House said the tariffs would take effect in 30 days and cover "products ranging from wine to hockey sticks to cement."

Trump signed the three proclamations under Section 338 of the Tariff Act ​of 1930 — a nearly century-old trade law that allows for tariffs of up to 50% on imports from ​specific countries.

However, the new tariffs will not apply to energy, potash (used in agricultural fertilizer), fish, critical minerals and goods already covered by existing tariffs under Section 232 of the law which relates to national security.

White House accuses Canada of 'discriminatory treatment'

The White House said the move was a response to Canada's "discriminatory treatment" of American goods.

Specifically, it said Canada imposed tariffs and quotas on US-manufactured cars that it did not apply to cars from other countries, and it said all but two Canadian states and territories have restricted the distribution of American alcohol.

"Over the past year and a half, only two countries have chosen to retaliate against President Trump’s tariffs rather than negotiate a deal with the United States: the People’s Republic of China and Canada," the White House said.

How did Canada respond to the new US tariff plan?

Canadian Prime Minister Mark Carney said the US tariffs are "in direct violation" of the Canada-United States-Mexico Agreement (CUSMA), "the free trade agreement between Canada, the United States and Mexico."

Carney said Canada has made proposals to "modernize" CUSMA and "we stand ready to intensify those discussions in the coming weeks."

Ontario Premier Doug Ford condemned the proposed US tariffs, warning that they would have economic consequences on both sides of the border.

In a post on X, Ford vowed to continue advocating for Ontario's interests, arguing that Canada should match any US tariffs with equivalent countermeasures.

He said, “I’ll never stop fighting to protect Ontario. If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar.”

Candace Laing, president and CEO of the Canadian Chamber of Commerce, described the Trump administration's latest tariff measures as "regrettable" in comments to AP news agency.

She urged both countries to use the 30-day period before they take effect "to make meaningful progress in advancing formal talks."

The implications of the tariffs extend beyond Canada, according to Scott Lincicome, vice president of general economics at the libertarian Cato Institute in Washington, D.C. He warned in comments also to AP that the measures would inject "massive uncertainty" into the global economy and affect a range of US trading partners.

"We crossed the Rubicon," Lincicome said, describing the use of Section 338 as "the nuclear option for Trump tariffs."

Wildfires add to growing US–Canada tensions

Trump has also suggested additional tariffs in response to Canadian wildfire smoke that has affected air quality in parts of the United States.

Although Trump and Canadian Prime Minister Carney attended the FIFA Club World Cup final together, US officials said their meeting was not intended to address trade issues.

The latest tariff measures reflect broader tensions between the two countries. Trump earlier in his second term mocked Canada and said it should be the 51st US state, sparking backlash from Canadians and pushback from Carney.