Trump imposes 50% tariffs on most Canadian goods, citing disputes over autos, alcohol, and dairy

President Trump signed three proclamations invoking Section 338 of the 1930 Trade Act to impose 50% tariffs on most Canadian goods, with the levies set to begin in 30 days. The tariffs cover goods previously protected under the United States-Mexico-Canada Agreement, which was not renewed by the U.S. and is now subject to renegotiations that could run until 2036. Energy products, potash, fish, and critical minerals are excluded.

A White House official, speaking anonymously in a call with reporters, said Canada was one of the only countries besides China to retaliate against earlier U.S. tariffs and said it must be held accountable. Trump's proclamations state that Canada discriminates against American autos, alcohol, and cheese relative to other nations. The AP reported that Canada's retaliatory measures — including a 25% tariff on U.S. motor vehicles not qualifying under USMCA and most Canadian provinces halting purchases of American alcoholic beverages — were themselves responses to Trump's earlier tariffs imposed on the pretext of reducing fentanyl smuggling.

Prime Minister Carney said Canada "stands ready to engage intensively" to resolve outstanding issues and noted that the trade dispute has raised costs "particularly in the U.S." Candace Laing, CEO of the Canadian Chamber of Commerce, described the move as "regrettable" but urged both sides to use the 30-day window for meaningful negotiations. Ontario Premier Doug Ford posted on social media that Canada should respond "tariff for tariff, dollar for dollar" if the measures proceed.