The new duties, announced under Section 338 of the Tariff Act of 1930, will apply to hundreds of Canadian products in 30 days, with exemptions for energy, potash, critical minerals and several other categories.
The Trump administration has announced an additional 50% tariff on selected Canadian imports, citing discriminatory trade practices. | Photo: X/@WhiteHouse
US President Donald Trump has announced an additional 50 per cent tariff on hundreds of Canadian products, accusing Ottawa of discriminating against American exports of automobiles, dairy products and alcoholic beverages. The new duties, signed under Section 338 of the Tariff Act of 1930, are set to take effect 30 days after the proclamations.
The White House said the measures are intended to offset what it described as Canada’s “discriminatory treatment” of US commerce and create a level playing field for American exporters. The tariffs will apply even if goods qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
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According to the White House, the additional duties apply to hundreds of Canadian imports, including products ranging from wine and hockey sticks to cement and consumer goods.
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The administration said the tariffs will not apply to energy, potash, products already covered under Section 232 tariffs, fish, critical minerals and certain other specified goods.
The Trump administration argued that Canada continues to maintain policies that disadvantage American exporters while offering more favourable treatment to products from other trading partners.
According to the White House, Canada imposes tariffs and quota restrictions on US-made vehicles that are not applied to imports from several other countries. It also alleged that Canada’s quota system encourages American automakers to invest in production facilities north of the border instead of expanding manufacturing in the United States.
The administration further claimed that Canada’s dairy quota system under the USMCA is more restrictive than the arrangements it offers to European Union exporters under the Canada-European Union Comprehensive Economic and Trade Agreement.
The White House also criticised restrictions on American alcoholic beverages, saying all but two Canadian provinces and territories had halted the purchase, distribution or retail sale of US alcohol while continuing to allow products from other countries.
The administration said Canadian imports of US motor vehicles fell by around 22 per cent, or $5.6 billion, between April 2025 and March 2026 compared with the previous year.
It also said imports of US alcoholic beverages into Canada dropped by about 81 per cent, or $582 million, during the March 2025-February 2026 period.
The White House said China and Canada were the only countries to retaliate against Trump’s tariff measures over the past year and a half instead of negotiating trade agreements with Washington.
It said the administration had secured 18 trade deals that opened new markets for US exports, while accusing Canada of maintaining trade barriers instead of addressing American concerns.
The latest tariffs mark a significant escalation in trade tensions between the United States and Canada as the Trump administration continues to use tariffs as part of its America First trade policy.
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