Donald Trump to impose 50% tariff on most Canadian goods, White House says | Trump tariffs

The White House announced Monday that it would impose 50% tariffs on most Canadian products in response to Donald Trump’s retaliation for the country’s previous U.S. tariffs, declaring that Canada unfairly discriminates against American cars, alcohol and dairy products.

The White House said the tariffs would affect a wide range of products, including wine, hockey sticks and cement. These also include goods previously protected from import duties under the United States-Mexico-Canada (USMCA) agreement.

new tariffs energy products, fish, critical minerals and potash will be excluded. Also excluded are products such as steel and aluminum that are currently subject to tariffs aimed at protecting national security.

High tariffs likely A new wave of economic chaos will emerge, with the risk of higher inflation and further fraying of relations between the two countries, which were close-knit before Trump’s return to the White House.

The White House said the tariffs would go into effect within 30 days, leaving time for possible negotiations between the two countries.

Embers signed Three proclamations instituting tariffs under Article 338 of the Commercial Code of 1930. Last year, several Democratic lawmakers proposed removing the section, saying Trump could use it to destabilize the economy.

A memo from the White House claims that Trump “moved to hold Canada accountable for its ongoing discrimination against and unreasonable and unequal treatment of U.S. business that burdens and disadvantages hard-working Americans.”

In his statements, Trump claims that Canada discriminates against American automobiles, alcohol, and cheese compared to other nations; but his claim is based largely on Canada’s retaliatory actions after the US president imposed tariffs on Canada under the pretext that it should do more to stop fentanyl smuggling into the US.

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.

The White House also noted that all but two Canadian provinces and territories have halted sales of U.S. alcoholic beverages, but similar restrictions have not been imposed on other countries.

Trump also took issue with Canada’s treatment of US cheese, saying in his statement that Canada discriminates against the US compared to Europe when it comes to dairy products.

Trump last week threatened to impose tariffs as smoke from devastating wildfires in Canada spread across much of the United States.

“We hold Canada responsible for their failure to properly protect their forests and Bushlands here, and for the needless invasion of the United States by polluted, polluted and unhealthy air whose quality is dangerous and completely unacceptable!” HE wrote at Truth Social.

Trump watched Sunday’s World Cup final with Canadian prime minister Mark Carney, who had previously turned down the US president and won the premiership last year by vowing to defend Canada.

After the game, Trump told reporters that he had raised the issue of wildfire smoke with Carney.

“I told him, ‘You have to stop these fires from getting in and poisoning our air. Our air is poisoned,'” Trump said about their speech.

According to the Associated Press, a White House official who introduced the new tariffs to reporters said that Trump asked his aides to investigate additional tariffs because wildfires in Canada are damaging US air quality.

Canada’s federal government did not immediately comment on Trump’s action, but Ontario premier Doug Ford said he “will never stop fighting to protect Ontario.”

“If these tariffs continue, Canada should respond with tariff for tariff, dollar for dollar,” Ford said. Published on social media.

Candace Laing, CEO of the Canadian Chamber of Commerce, said the Trump administration’s moves were “regrettable” but that the two countries should use the 30-day window before tariffs kick in “to make meaningful progress in advancing formal talks.”

New tariffs on Canadian imports could pose serious political and economic risks for Trump ahead of November midterm elections for control of Congress. So-called “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 high court ruled in a 6-3 decision in February that Trump unlawfully used his emergency executive authority to impose his global tariffs, prompting the administration to find alternative ways to raise import duties by relying on a range of legal authorities.

The US has had to pay back $81 billion in tariffs so far this fiscal year.

Associated Press contributed reporting