Trump Imposes 50% Tariffs on Canadian Goods, Escalating U.S.-Canada Trade Dispute

WASHINGTON: U.S. President Donald Trump has announced sweeping 50% tariffs on most Canadian imports, accusing Canada of unfair trade practices against American automobiles, alcohol and dairy products, marking a significant escalation in trade tensions between the two neighboring countries.

The tariffs, introduced under Section 338 of the U.S. Tariff Act of 1930, target a broad range of Canadian goods while exempting energy products, potash, fish and critical minerals. The White House said the measures are intended to address what it described as Canada’s discriminatory policies affecting U.S. exports, particularly in the automotive, alcohol and dairy sectors.

Administration officials said Canada was one of the few countries to retaliate against previous U.S. tariff measures and argued that stronger action was necessary to protect American industries. The new tariffs are expected to take effect in 30 days, leaving room for potential negotiations between the two countries.

Canadian Prime Minister Mark Carney criticized the decision, warning that the tariffs could raise costs for consumers and businesses on both sides of the border. Canadian officials have indicated they are considering retaliatory measures if a negotiated settlement is not reached.

Economists and trade experts have cautioned that the move could disrupt North American supply chains, fuel inflation and further strain bilateral economic relations. Business groups have also urged both governments to resume negotiations to avoid a prolonged trade conflict that could affect manufacturers, exporters and consumers across the continent.