The US president has invoked an obscure law never tested in court to impose the new duties
US President Donald Trump has slapped 50% tariffs on a broad range of Canadian imports, citing what he called Ottawa’s “unequal treatment” of American cars, dairy products, and alcohol.
Trump’s use of emergency powers to impose sweeping tariffs was partly struck down by the US Supreme Court earlier this year. He invoked Section 338 of the Tariff Act of 1930 to impose the new duties. The tariffs will take effect in 30 days and apply even to goods covered by the US-Mexico-Canada free trade agreement (USMCA), the White House announced on Monday.
The move marks the latest escalation in a trade war that has intensified since Trump’s return to the White House. Washington has already imposed tariffs on Canadian steel, aluminum, automobiles, and other imports. Ottawa has responded with countertariffs and other retaliatory measures.
The new duties target a range of consumer and industrial products, including wine, hockey sticks, and cement. Key Canadian exports such as energy, potash, fish, and critical minerals are exempt, according to a White House fact sheet.
Washington argues that Canada unfairly taxes certain US-made vehicles, maintains protectionist barriers on dairy imports, and continues provincial boycotts of American alcoholic beverages. The administration said those measures amount to “discriminatory treatment” of US products.
Canadian Prime Minister Mark Carney condemned the move, accusing Washington of violating the USMCA while leaving the door open to negotiations.
“This is 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 trade agreement, Carney said in a statement on Monday. “We stand ready to intensify those discussions in the coming weeks.”
Ontario Premier Doug Ford urged Ottawa to respond in kind. “If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar,” he wrote on X.
Earlier this month, Trump threatened additional tariffs on Canada, claiming its poor forest management had blanketed parts of the US in wildfire smoke and that Canada should pay for its alleged “willful negligence.”
Announcing the new tariffs, the White House said Canada and China were the only countries to retaliate against the duties imposed last year. It also accused Ottawa of discriminating against US producers.
“Canada has taken US alcohol products off Canadian shelves,” US Trade Representative Jamieson Greer said, adding that the new tariffs were intended to “hold Canada accountable for its retaliation and discrimination.”
Ottawa responded to Trump’s trade offensive in 2025 with 25% duties on about C$30 billion ($21.7 billion) worth of US goods. While Mark Carney later rolled some of those back, tariffs on American cars, steel, and aluminum remain in force.
The latest move is part of a sweeping tariff drive launched after Trump’s return to office in January 2025. He has imposed duties on imports from allies and rivals alike, targeting countries including China, Canada and Mexico, as well as steel, aluminum, and automobiles.
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