Trade tensions are rising once again between the Trump administration and Canada. On Monday, Donald Trump announced a new 50% tariff on some Canadian goods under Section 338 of the Tariff Act of 1930, which empowers the US president to impose additional tariffs of up to 50% on imports from any foreign country that discriminates
Trade tensions are rising once again between the Trump administration and Canada.
On Monday, Donald Trump announced a new 50% tariff on some Canadian goods under Section 338 of the Tariff Act of 1930, which empowers the US president to impose additional tariffs of up to 50% on imports from any foreign country that discriminates against US trade.
“Specifically, Canada has removed American alcohol products from Canadian shelves, given better market access to European Union dairy products, and placed a limit on exports of American vehicles to Canada by companies relocating to the United States,” Ambassador Jamieson Greer said in a statement Monday.
The tariffs will not apply to energy, potash, fish, critical minerals or products already covered by separate sectoral duties, including cars and metals. Goods that qualify under the United States-Mexico-Canada Agreement will also not receive exemptions.
Since returning to power, Trump has repeatedly imposed and adjusted tariffs on Canadian goods and called for Canada to become the “51st state,” testing one of the world’s closest economic relationships.
Canada has since responded with retaliatory tariffs on billions of dollars’ worth of American goods and a national “Buy Canada” campaign that removed American products, including liquor, from store shelves.
The dispute deepened after the United States refused to renew the USMCA earlier this month, setting the stage for years of new trade negotiations.
The White House did not immediately respond to a request for comment.
Last week, Trump also threatened additional tariffs on wildfire smoke reaching the United States, accusing Canada of “deliberate negligence” in forest management.
Ontario Premier Doug Ford dismissed the claim on Monday, calling it “garbage” and urging the United States to help Canada fight the fires.
“Why don’t you send some water bombers? Why don’t you start helping us, like we would help you in an instant?” Ford said at a news conference in Toronto.
“I will never stop fighting to protect Ontario,” Ford added in X on Monday. “If these tariffs continue, Canada should respond tariff by tariff, dollar for dollar.”
