US President Donald Trump has announced new 50 per cent tariffs on a range of Canadian imports worth nearly $20 billion, escalating trade tensions between the two neighbouring countries and opening a new front in the ongoing global trade dispute.
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The new tariffs, which are expected to take effect after 30 days, will target various Canadian products including wine, cement, dairy goods, furniture, clothing, fishing equipment, swimming pools, seeds and ice hockey gear. The US Trade Representative’s office said the measures cover around 5.2 per cent of total goods imported from Canada in 2025.
The Trump administration said the decision was taken in response to what it described as unfair treatment of American products, particularly in sectors such as automobiles, alcohol and dairy. US Trade Representative Jamieson Greer accused Canada of maintaining policies that disadvantage American industries and said Washington was seeking more balanced trade relations.
The tariffs were introduced under Section 338 of the US Tariff Act of 1930, a provision that allows the president to impose penalties of up to 50 per cent on countries considered to discriminate against US goods. The move marks the first known use of the provision in nearly a century.
Canadian Prime Minister Mark Carney criticised the decision, saying Ottawa had already presented proposals aimed at resolving trade disagreements with Washington. He argued that previous US tariffs violated the North American trade agreement and increased costs for consumers.
Carney said Canada remained willing to engage with the United States to find solutions beneficial for both countries.
The latest dispute comes as Washington and Mexico continue discussions over changes to the US-Mexico-Canada Agreement. Trump has also criticised Canada over wildfire-related pollution affecting parts of the United States.
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Economic experts warned that the use of aggressive tariffs could increase costs, disrupt supply chains and revive concerns about protectionist trade policies. Analysts noted that Section 338 was historically designed to promote equal tariff treatment rather than support broad retaliatory measures.
The new tariffs are expected to further strain one of the world’s largest trading relationships and could have wider implications for global commerce.