Trump slaps 50% tariff on select Canadian imports amid trade dispute
New tariffs target select Canadian imports under a 1930 trade law
US President Donald Trump announced a new 50% tariff on select Canadian imports, marking the latest escalation in the trade dispute between the two neighbouring countries.
The measure, announced on Monday, invokes Section 338 of the Tariff Act of 1930, which allows the US president to impose additional duties of up to 50% on imports from countries deemed to discriminate against American commerce.
US cites Canada's trade policies
In a statement, US Trade Representative Jamieson Greer said the decision was driven by several Canadian trade measures that Washington considers unfair.
According to Greer, Canada removed US alcohol products from store shelves, granted European Union dairy products greater market access and capped exports of US-made vehicles from companies that reshored production to the United States.
Some goods exempt from new tariffs
The new tariffs will not apply to energy products, potash, fish, critical minerals or goods already subject to separate sector-specific duties, including automobiles and metals.
Products that qualify under the US-Mexico-Canada Agreement (USMCA), however, will not receive exemptions under the new measure.
Trade tensions continue to rise
Since returning to office, Trump has repeatedly imposed and revised tariffs on Canadian imports while renewing calls for Canada to become the "51st state," further straining relations between the two allies.
Canada has responded with retaliatory tariffs on billions of dollars' worth of US goods and launched a nationwide "Buy Canada" campaign that removed many American products, including liquor, from store shelves.
The dispute intensified earlier this month after the United States declined to renew the USMCA, paving the way for fresh trade negotiations.
Ontario premier urges retaliation
The latest tariff announcement comes days after Trump threatened additional trade action over wildfire smoke drifting into the United States, accusing Canada of poor forest management.
Ontario Premier Doug Ford rejected the criticism, calling the claims "rubbish" and urging the US to help combat the wildfires instead.
Ford also said Canada should respond "tariff for tariff, dollar for dollar" if the new US duties move forward.
