US imposes new 50% tariffs on $20bn worth of Canadian products

The United States has imposed sweeping 50% tariffs on a wide range of Canadian imports, valued at approximately $20 billion. This move, announced by U.S. President Donald Trump, is a direct response to what the U.S. administration deems discriminatory practices by Canada against American-made cars, alcohol, and dairy products, escalating a global trade dispute.

The tariffs, which will take effect in 30 days, target goods including wine, cement, ice hockey equipment, dairy products, furniture, clothing, and wigs. This action marks the first known use of Section 338 of the Tariff Act of 1930 in nearly a century. This section allows the president to impose punitive tariffs of up to 50% on trading partners found to be discriminating against U.S. goods.

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While the administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national-security sensitive sectors.

According to the Office of the U.S. Trade Representative, these tariffs represent about 5.2% of the total $382 billion in goods the U.S. imported from Canada in 2025. U.S. Trade Representative Jamieson Greer stated that Canada continues to retaliate against U.S. efforts to rebalance trade and protect national-security sensitive sectors, unlike other allies.

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This trade dispute has raised costs for families, particularly in the US.

Canadian Prime Minister Mark Carney responded by stating that his government has presented comprehensive proposals to resolve trade disputes. He asserted that previous tariffs imposed by Trump violated the North American trade pact and have increased costs for families, particularly in the U.S. Carney affirmed Canada's readiness to engage intensively to address outstanding issues for the mutual benefit of both nations.

The Trump administration has frequently accused Canada and China of implementing retaliatory measures against its tariff policies. Notably, Canada has been excluded from ongoing negotiations between the U.S. and Mexico regarding changes to the U.S.-Mexico-Canada Agreement (USMCA). The U.S. president had previously threatened to add the "incalculable cost" of dealing with wildfires, which sent smoke across parts of the U.S., to existing tariffs on Canadian goods.

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Canada stands ready to engage intensively to address outstanding issues with the US to the mutual benefit of our citizens.