US President Donald Trump has imposed a 50% tariff on a wide range of Canadian imports, retaliating for what he called “unequal treatment” of American cars, dairy and alcohol. The duties, which take effect in 30 days, target everyday items such as wine and hockey sticks as well as industrial goods like cement, but spare energy, potash, critical minerals and fish.
The move marks a major escalation in trade tensions between the North American neighbours, simmering since Trump returned to office in January 2025 and unleashed a global tariff programme. The White House said the new tariffs apply regardless of the existing free trade agreement between Canada, the US and Mexico, known as the USMCA.
“Trump hits Canada with 50% tariffs; Carney vows to intensify trade talks”
Canada’s Prime Minister Mark Carney responded by saying his country stood ready to “intensify” trade talks with the US in the coming weeks. In a statement on X, Carney described the action as “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 also cited “threats to Canadian sovereignty”.
The US Supreme Court earlier this year ruled that many of Trump’s tariffs imposed globally under emergency powers were illegally enacted. But the latest action uses a different, obscure law that is untested in court.
Canada, one of the US’s closest trading partners, retaliated last year with a 25% levy on about C$30bn (£16bn; $21.7bn) worth of American goods, later dropping some. The US already maintains active tariffs of 15% to 50% on Canadian steel, aluminium and copper, a 35% tariff on Canadian softwood lumber, and a 25% tax on non-US parts in cars. Canada has its own 25% counter-tariff on selected imports of American steel, aluminium and vehicles.
The announcement also follows Trump’s threat to impose tariffs over Canadian wildfire smoke drifting into US cities, though that has not been officially cited as justification. With talks set to intensify and the 30-day deadline looming, the trade war between the two neighbours shows no signs of cooling.
