US President Donald Trump has ordered sweeping new 50% tariffs on a broad range of Canadian goods, accusing Canada of “discriminatory treatment” targeting American alcohol, automobiles and dairy products.
The duties will come into force in 30 days and apply to products including wine, hockey sticks and cement, according to the White House.
Mr Trump turned to a largely untested legal mechanism — Section 338 of the Tariff Act of 1930 — after the Supreme Court struck down many of his tariffs earlier this year.
Energy, potash and goods already subject to sector-specific tariffs will be exempt from the latest measures.
Canadian Prime Minister Mark Carney responded by saying Canada was prepared to “intensify” negotiations with the United States and had put forward proposals aimed at settling the disputes and modernising the USMCA.
“This is the latest in a series of unilateral US trade actions that began with the US imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement,” he added.
“Canada, as is its right, has merely matched those measures,” Mr Carney said.
The move also stirred fears among some businesses that the trade confrontation could deepen.
Donald Trump had threatened Canada with increased tariffs over wildfire smoke descending into the US
Since returning to the presidency last year, Mr Trump has imposed duties on a number of US trading partners, although his orders have often spared goods entering the country under the USMCA.
The new tariffs threaten to place further pressure on relations with the second largest US trade partner. They were announced only days after Mr Trump warned Canada of higher duties over wildfire smoke drifting into the United States.
In unveiling the measures, the White House said Canada and China were the only two countries to retaliate against Mr Trump’s sweeping tariffs introduced in 2025.
It also criticised the decision by most Canadian provinces to stop purchasing US alcohol in response to Mr Trump’s tariffs and his repeated calls to annex Canada as America’s “51st state”.
“Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States,” US Trade Representative Jamieson Greer charged.
The announcement was intended to “hold Canada accountable for its retaliation and discrimination,” he added.
Chris Swonger, president of the Distilled Spirits Council of the United States, said the industry welcomed recognition of the restrictions imposed on American alcohol.
“We had hoped, however, that this issue could be resolved without further escalation,” Mr Swonger said.
He warned that steep duties could trigger additional retaliation “at a time when many US hospitality businesses continue to face financial hardships”.
