Donald Trump has imposed a 50% tariff on a wide range of Canadian goods, including wine, hockey sticks and cement, in a sharp escalation of trade tensions between the two neighbours. The US president accused Canada of “unequal treatment” of American cars, dairy and alcohol, and said the duties would take effect in 30 days.
Prime Minister Mark Carney responded by saying Canada stood ready to “intensify” trade talks with the US in the coming weeks. In a statement on X, he described the move as “the latest in a series of unilateral US trade actions” that violated the Canada-United States-Mexico Agreement (USMCA), and cited “threats to Canadian sovereignty” – a possible reference to Trump’s calls to make Canada the 51st US state.
“Trump imposes 50% tariffs on Canadian wine, hockey sticks and cement; Carney vows to intensify trade talks.”
The new tariffs build on existing barriers. Washington already maintains duties of 15% to 50% on Canadian steel, aluminium and copper, a 35% tariff on softwood lumber, and a 25% tax on non-US car parts. Canada has its own 25% counter-tariff on selected US steel, aluminium and vehicles, part of a retaliatory wave that began in 2025 when Ottawa placed a 25% levy on about C$30bn worth of US goods. Carney later dropped some of those but kept tariffs on US cars, steel and aluminium.
Monday’s action uses an obscure law that is untested in court, after the US Supreme Court ruled earlier this year that many of Trump’s earlier tariffs imposed under emergency powers were illegal. The new duties apply to all covered goods regardless of whether they were included under the USMCA. Key Canadian exports such as energy, potash, critical minerals and fish are spared, but everyday consumer items like wine and hockey sticks and industrial goods like cement are not.
Trump had previously threatened tariffs over Canadian wildfire smoke drifting into US cities, but the executive orders signed on Monday make no mention of wildfires. Instead, the proclamations list trade irritants related to cars, dairy and alcohol, signalling a breakdown in negotiations. The White House accused Canada of “continued discrimination”, according to a US official.
The FT’s coverage of the dispute noted that Trump’s tariffs have taught an important lesson in the value of retaliation. With talks set to intensify in coming weeks, the question is whether Canada’s willingness to hit back will bring Washington to the table – or push it further away.
