US President Donald Trump has announced new 50% tariffs on a range of Canadian imports, citing what the administration described as discriminatory treatment of US products by Canada.
According to the White House, the tariffs will take effect in 30 days and will apply to products including wine, hockey sticks, cement and other selected goods.
Why is the US imposing the tariffs?
The Trump administration said the measures respond to Canada’s policies affecting US alcohol, dairy and automobile exports.
US Trade Representative Jamieson Greer said Canada had removed US alcoholic beverages from store shelves, limited market access for certain American dairy products and imposed restrictions affecting US vehicle exports.
The administration said the tariffs are intended to hold Canada accountable for what it called retaliatory and discriminatory trade practices.
What products are exempt?
The White House said the new duties will not apply to energy products, potash or goods already subject to existing sector-specific tariffs.
However, the measures will affect products covered under the United States-Mexico-Canada Agreement (USMCA).
How has Canada responded?
Canadian Prime Minister Mark Carney criticised the decision, calling it a direct violation of the USMCA.
Carney said Canada remains prepared to intensify discussions with the United States in an effort to resolve the dispute through dialogue.
What legal authority is being used?
The Trump administration is invoking Section 338 of the Tariff Act of 1930, a legal provision that has not previously been widely used to impose tariffs of this scale.
The move follows earlier court rulings that struck down several tariff measures introduced by the administration.
What could be the economic impact?
The announcement has raised concerns among businesses about escalating trade tensions between the United States and Canada, the second-largest US trading partner.
Analysts say the tariffs could increase costs for affected industries, disrupt cross-border supply chains and place additional strain on economic relations between the two countries as trade negotiations continue.