The White House said on Monday that Donald Trump is imposing 50% tariffs on most Canadian goods in response to Canada’s retaliation against earlier US tariffs. Officials said Canada has unfairly discriminated against American autos, alcohol and dairy products, and the new measures are expected to affect a wide range of imports.
The tariffs will hit products including wine, hockey sticks and cement, according to the White House. They also apply to goods that were previously protected from import taxes under the United States-Mexico-Canada (USMCA) agreement, while excluding energy products, fish, critical minerals and potash. Goods already subject to tariffs aimed at protecting national security, such as steel and aluminum, are also excluded.
What does the White House say the tariffs will target?
The White House said the tariffs will apply to a broad set of Canadian goods and that they are being imposed in response to Canada’s retaliatory measures after previous US tariffs. The administration framed the move as punishment for what it described as unfair treatment of US commerce.
The steep tariffs are likely to trigger a new wave of economic disruption, with risks of higher inflation and further damage to relations between the two countries, which were closely linked before Trump returned to the White House.
How has Canada responded?
Canada’s prime minister, , said in a statement that his government has made comprehensive proposals to resolve trade disputes with Washington, and argued that Trump’s previous tariffs violated a trade pact between the two countries.
“This trade dispute has raised costs for families, particularly in the US,” he said. “Canada stands ready to engage intensively to address outstanding issues with the US to the mutual benefit of our citizens.”
The White House said the tariffs will take effect in 30 days, leaving open a period for possible negotiations between the two countries.
What legal authority is Trump using?
Trump issued three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act. Several Democratic lawmakers last year proposed repealing the section because they said Trump could use it to destabilize the economy.
A White House fact sheet said Trump is “taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hardworking Americans”.
“taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hardworking Americans”
Trump said in the proclamations that Canada discriminates against American automobiles, alcohol and cheese relative to other nations, but much of his case rests on retaliatory measures Canada took after the US president imposed tariffs on Canada on the grounds that it should do more to stop fentanyl smuggling into the US.
In his autos proclamation, Trump noted that Canada maintained, starting in April 2025, a 25% tariff on imports of US motor vehicles that did not qualify for preferential treatment under the USMCA.
The White House also pointed to all but two Canadian provinces and territories stopping the sale of US alcoholic beverages, while not imposing similar restrictions on other countries.
Trump also objected to Canada’s treatment of US cheese, saying in his proclamation that Canada discriminates against the US compared with Europe on dairy products.
Why did Trump mention wildfire smoke?
Trump last week threatened to impose tariffs because of smoke from devastating in Canada across large portions of the US.
“We are holding Canada responsible for the fact that they are not properly maintaining their Forests, and Brush therein, and the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable!”
He made the remarks on Truth Social.
Trump discussed Sunday’s World Cup final with Mark Carney, the Canadian prime minister who has previously pushed back on the US president and won the premiership last year on a platform of promising to stand up for Canada.
After the match, Trump told reporters he had raised the issue of wildfire smoke with Carney.
“I told him, I mean, ‘You got to stop these fires from coming in and, you know, poisoning our air. Our air has been poisoned,’”
A White House official who previewed the new tariffs to reporters said Trump has requested aides explore additional tariffs due to Canadian wildfires harming US air quality, the Associated Press reported.
How are Canadian officials reacting?
The Canadian federal government did not immediately comment on Trump’s action, but Doug Ford, the Ontario premier, said he’d “never stop fighting to protect Ontario”.
“If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar,”
Candace Laing, the CEO of the Canadian chamber of commerce, said the Trump administration’s moves were “regrettable” but that the two countries need to use the 30-day window before the tariffs start “to make meaningful progress in advancing formal talks”.
What are the wider political and economic risks?
The new taxes on Canadian imports could carry serious political and economic risks for Trump ahead of the November midterm elections for control of Congress. His so-called “” tariffs last year in April caused a financial market meltdown over concerns about inflation and a recession, prompting him to walk back the rates for a period of negotiation.
In a 6-3 decision in February, the supreme court said that Trump had illegally used emergency executive power to impose his global tariffs, causing the administration to find alternative ways to raise import taxes based on a series of legal authorities.
The US has been forced to collect $81bn in tariffs so far this fiscal year.
The Associated Press contributed reporting
Key Facts
- The White House said on Monday Trump is imposing 50% tariffs on most Canadian goods.
- The tariffs take effect in 30 days and exclude energy products, fish, critical minerals, potash, steel and aluminum.
- Trump issued three proclamations under Section 338 of the 1930 Trade Act.
- Canada’s prime minister said his government has made comprehensive proposals to resolve the dispute.
- The US has collected $81bn in tariffs so far this fiscal year.
