Trump orders 50% tariff on many Canadian goods

President Donald Trump has ordered new 50% tariffs on a wide range of Canadian goods, escalating trade tensions between the two North American neighbors. The White House announced the move Monday, citing "discriminatory treatment" by Ottawa against American alcohol, automobile, and dairy products.

The sweeping duties are set to take effect in 30 days and will cover products such as wine, hockey sticks, and cement. The administration invoked Section 338 of the Tariff Act of 1930, a little-used legal provision that allows the president to impose significant tariffs without congressional approval if a country is deemed to engage in discriminatory trade practices.

This latest action notably impacts products covered under the United States-Mexico-Canada Agreement (USMCA). While Trump has previously imposed tariffs on various trading partners, these have often included broad exemptions for goods entering the U.S. under the North American trade pact. The new duties, however, will not apply to energy, potash, or goods already subject to sector-specific tariffs.

The move further strains relations between Washington and Ottawa, coming just days after Trump threatened Canada with increased tariffs over smoke from wildfires that drifted into the United States. The imposition of these tariffs signals a potentially significant disruption to bilateral trade.