US imposes 50% tariff on Canadian goods including cars, alcohol and dairy
The United States has imposed a new 50% tariff on many Canadian goods, marking the latest trade escalation between the two countries under the Trump administration. The tariffs, announced on Monday, will affect a wide range of products including dairy, alcohol, and cars, according to the White House.
President Donald Trump signed orders to impose the tariffs under Section 338 of the Tariff Act of 1930, citing "discriminatory treatment" of US alcohol, automobile, and dairy products by Canada. The tariffs will take effect in 30 days and will cover products ranging from wine to hockey sticks to cement, the White House said in a statement.
"By doing so, President Trump is offsetting the burden and disadvantage on U.S. commerce from Canada’s discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports — cars, alcohol, and dairy," the White House statement read.
Canadian Prime Minister Mark Carney has rejected the accusations, calling the tariffs a "direct violation" of the US-Mexico-Canada free trade agreement (USMCA). Carney stated that Canada is ready to intensify discussions to resolve the trade disputes with the US.
The tariffs will not apply to energy, potash, and goods already impacted by sector-specific tariffs, the White House added. However, they will affect products covered under the USMCA, which has been a point of contention between the two countries.
The White House also noted that Canada was one of only two countries, along with China, to retaliate against Trump's tariffs last year. The administration has been critical of Canada's trade practices, particularly in the alcohol and dairy sectors.
In response to the tariffs, Carney emphasized that Canada has already proposed solutions to resolve the disputes and is willing to engage in further negotiations. "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 said in a statement.
The tariffs are expected to impact a wide range of Canadian exports to the US, including wine, hockey sticks, and cement. However, energy products, fish, and critical minerals will be exempt from the new tariffs.
The tariffs will take effect on August 19, 2026, according to the White House. The administration has indicated that it is considering additional measures, including potential tariffs related to the ongoing wildfires in Canada, which have affected air quality in the US.
The decision to impose tariffs comes at a time when the US, Canada, and Mexico are negotiating an update to the USMCA. The agreement, signed in 2020 during Trump's first term, has been a key component of North American trade relations.
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