- Trump has announced new 50% tariffs on Canadian goods, marking the first recorded use of Section 338 of the Tariff Act of 1930.
- The tariffs will affect items ranging from wine to cement and ice hockey gear, including dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs.
- These tariffs will apply to nearly $20bn of Canadian imports, which is about 5.2 percent of total US imports from Canada in 2025, as Trump cited a $46.4bn US goods trade deficit with Canada.
- The White House cited "discriminatory treatment" against US alcohol, auto, and dairy products, claiming Canada has restricted US alcohol products and given better market access to EU dairy.
- Canadian PM Mark Carney described the tariffs as "the latest in a series of unilateral US trade actions" and stated that Canada has made "detailed and comprehensive proposals" to resolve the dispute.
President Donald Trump has imposed a new 50% tariff on a variety of Canadian goods, including wine, hockey sticks, and cement, set to take effect in 30 days. This decision affects nearly $20 billion in imports, approximately 5.2% of the total $382 billion worth of goods imported from Canada in 2025.
Trump invoked Section 338 of the Tariff Act of 1930, marking its first use in nearly a century. The law allows the president to impose punitive tariffs against countries perceived to discriminate against U.S. products. The White House cited “discriminatory treatment” from Canada, including the removal of U.S. alcohol products from shelves and preferential access for EU dairy products.12
The tariffs will not apply to oil, gas, or goods already subject to sector-specific tariffs. The U.S. Trade Representative's office noted that the U.S. goods trade deficit with Canada was $46.4 billion in 2025, primarily due to oil and gas imports. Canadian Prime Minister Mark Carney criticized the tariffs as a violation of the trilateral free trade agreement, stating that Canada is prepared to engage in discussions to resolve the dispute and modernize the CUSMA agreement.
This latest move adds to existing tariffs on Canadian copper, aluminum, and steel, which range from 15% to 50%.
“The tariffs mark the first recorded use of Section 338 of the Tariff Act of 1930, a rarely invoked law permitting punitive duties up to 50%. Canadian PM Mark Carney called the action a violation of the USMCA and said Canada has proposed comprehensive solutions to resolve the dispute.”
