US President Donald Trump has imposed a 50% tariff on a wide range of goods imported from Canada, accusing the country of unfair treatment of American cars, dairy products and alcohol.
The new duties will affect consumer products such as wine and hockey sticks, along with industrial goods including cement. However, several major Canadian exports, including energy, potash, critical minerals and fish, will be exempt.
The White House said the tariffs will come into effect in 30 days, setting the stage for a sharp escalation in trade tensions between the two North American neighbours.
Canadian Prime Minister Mark Carney said his government was prepared to intensify trade negotiations with Washington in the coming weeks.
The latest action comes after years of growing friction between the two countries. Tensions increased after Trump returned to office in January 2025 and introduced a wide-ranging programme of tariffs affecting trading partners around the world.
Tariffs are taxes placed on imported goods and are generally paid by companies bringing products into a country.
The US Supreme Court ruled earlier this year that many of Trump’s global tariffs imposed under emergency powers had been enacted unlawfully. The latest measures rely on a different and relatively obscure law whose use has not yet been tested in court.
Canada previously responded to Trump’s tariff measures by imposing a 25% levy on about C$30 billion worth of US goods. Some of those measures were later withdrawn.
A White House fact sheet said the new tariffs would apply even to goods covered by the Canada-United States-Mexico Agreement, or USMCA.
The new duties add to existing trade barriers. The US already imposes tariffs ranging from 15% to 50% on Canadian steel, aluminium and copper. Canadian softwood lumber faces a 35% tariff, while non-US vehicle parts are subject to a 25% levy.
Canada maintains its own 25% counter-tariff on selected imports of American steel, aluminium and vehicles.
Carney described the new action as part of a series of unilateral US trade measures that he said violated the USMCA. He also referred to threats to Canadian sovereignty, apparently in response to Trump’s repeated comments about Canada becoming the 51st US state.
Ontario Premier Doug Ford called for a matching response if the tariffs proceed.
“If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar,” Ford said.
Trump’s executive action listed three main complaints involving Canadian trade practices: vehicles, dairy products and alcohol. On cars, the US president pointed to taxes applied to certain American vehicles and parts not covered by the USMCA.
The move signals a breakdown in trade talks and leaves businesses on both sides of the border facing uncertainty as the 30-day period begins.
