US President Donald Trump has imposed a 50% tariff on most Canadian imports, accusing Canada of unfairly discriminating against American cars, dairy products and alcoholic beverages.
The new tariffs, announced on Monday, exempt energy products, potash, fish and critical minerals but apply to many goods that previously qualified for duty-free treatment under the US-Mexico-Canada Agreement, which recently expired.
A White House official said the measures were introduced under Section 338 of the Trade Act of 1930, citing Canada's retaliatory response to earlier US tariffs. The new duties are due to take effect in 30 days, leaving room for negotiations.
Trump has also asked advisers to examine additional tariffs linked to the impact of Canadian wildfire smoke on US air quality.
Canadian officials criticized the move, with Ontario Premier Doug Ford calling for dollar-for-dollar retaliatory tariffs. Economists warned the measures could escalate into a broader trade dispute, increase inflationary pressures and add uncertainty to the global economy ahead of the US midterm elections.
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