President Donald Trump has imposed 50% tariffs on most Canadian goods, declaring that Canada has unfairly discriminated against American autos, alcohol and dairy products.
The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump’s return to the White House.
The administration official previewing the action said that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable.
The official insisted on anonymity on a call with reporters to preview the president’s actions and said that Trump signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act.
The tariffs will take effect 30 days after signing and are designed to offset the burden and disadvantage on U.S. commerce from Canada’s discrimination.
The steep tariffs will probably unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump’s return to the White House.
The Canadian prime minister, Mark Carney, said in a statement that his government had made comprehensive proposals to resolve trade disputes with Washington, asserting that Trump’s past tariffs violated a trade pact between the two countries.
“This trade dispute has raised costs for families, particularly in the US,” he said.
The tariffs will hit a wide range of products, the White House said, including wine, hockey sticks and cement.
They also include goods previously protected from import taxes under the United States-Mexico-Canada (USMCA) agreement.
The new tariffs will exclude energy products, fish, critical minerals and potash.
They also exclude products already subject to tariffs aimed at protecting national security, such as steel and aluminum.