Trump imposes 50% tariffs on Canadian goods, citing disputes over autos, alcohol and cheese
WASHINGTON (AP) — President Donald Trump On Monday, he imposed a 50% tariff on most Canadian products, declaring that Canada unfairly discriminates against American automobiles, alcohol and dairy products.
Movement can release something new wave of economic chaosWe face the risk of higher inflation and the further fraying of relations between the two countries, which were close-knit before Trump’s return to the White House. The administration official previewing the action said Canada was one of the only countries other than China to retaliate against Trump’s previous tariffs and should be held accountable.
The official insisted on anonymity in a call with reporters to preview the president’s actions and said Trump signed three proclamations to initiate tariffs under Section 338 of the 1930 Trade Act. Last year, several Democratic lawmakers proposed removing the section, saying Trump could use it to destabilize the economy.
The new 50% tariffs will exclude energy products, potash, fish and critical minerals, but will include goods previously protected from import duties by the United States. United States-Mexico-Canada Agreementor USMCA. The failure to renew the 2020 trade agreement by the United States triggered a new set of negotiations that could continue until 2036.
The tariffs would go into effect within 30 days and cover “a range of products from wine to hockey sticks to cement,” the White House said in a memo.
The new tariffs pose serious political and economic risks for Trump ahead of November midterm elections for control of Congress. The “Liberation Day” tariffs in April last year caused a meltdown in the financial market due to concerns about inflation and recession, prompting it to pull back rates for a period of negotiations.
The Supreme Court ruled this February that Trump lacked the legal authority to impose tariffs by declaring an economic emergency, prompting the administration to find alternative ways to raise import duties by relying on a range of legal authority.
Tariffs are import taxes that companies can then pass on to consumers in the form of higher prices. The president argues that the costs created by tariffs will cause production to move to the United States, but there is little evidence of this in economic data.
Recent import duties could get worse Trump’s weak ratings on the economy. While running for president, he promised voters he would lower prices, but the annual inflation rate has increased since he became president as the war in Iran and tariffs pushed up oil prices.
The president has also asked aides to review additional tariffs on Canada because wildfires are negatively impacting air quality in the United States, a Trump administration official said. He had threatened to do this publicly in social media posts.
At Sunday’s World Cup final, Trump watched the match with Canadian Prime Minister Mark Carney, who openly challenged the US president and sought to expand Canada’s trade relations with other countries. The Trump administration official said their time together at the game was not a working visit to discuss trade and tariffs.
In his statements, Trump claims that Canada discriminates against American cars, alcohol, and cheese compared to other nations; but his claim is based largely on retaliatory actions taken by Canada after the US president imposed tariffs on Canada under the pretext that he needed to do more to stop fentanyl smuggling.
In his auto statement, Trump noted that Canada is maintaining a 25% tariff on imports of U.S. motor vehicles that do not qualify for preferential treatment under the USMCA starting in April 2025.
Regarding alcohol, the White House said all but two Canadian provinces and territories halted the purchase and retail sale of American alcoholic beverages starting last year; this was also a response to Trump’s tariffs and taunts about making Canada the 51st state.
But Trump has long opposed Canada’s treatment of U.S. cheese, saying in his statement that Canada discriminates against the U.S. compared to Europe when it comes to dairy products.
Trump and Carney have had a frosty relationship, with Carney, the former central banker who won the premiership last year promising to defend Canada.
At the World Economic Forum in Davos, Switzerland, in January, Carney called out Trump without naming him and said the “most powerful” countries were using the economy to coerce less powerful nations.
Trump responded at the time: “Canada lives because of the United States.”
