Trump hits Canada with 50 per cent tariffs

Washington: President Donald Trump imposed an additional 50 per cent tariff on hundreds of Canadian products, accusing Ottawa of discriminating against American exports of automobiles, alcoholic beverages and dairy products, in a major escalation of trade tensions between the two North American neighbours.

Invoking Section 338 of the Tariff Act of 1930, Trump signed three separate proclamations imposing the new duties on selected Canadian imports. The White House said the action was aimed at offsetting “the burden and disadvantage on US commerce from Canada’s discriminatory treatment of US commerce” and “levelling the playing field” for American exports, particularly cars, alcohol and dairy products.

According to the White House, the tariffs will take effect 30 days after signing and will apply regardless of whether goods qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA). The measures will not cover energy, potash, products already subject to Section 232 tariffs, fish, critical minerals and certain other specified goods.

The administration said the new tariffs cover a broad range of Canadian imports, including products ranging from wine and hockey sticks to cement and consumer goods. The accompanying annexes list hundreds of tariff classifications that will be subject to the additional 50 per cent duty.

The White House said Canada had maintained policies that discriminated against American exporters while giving more favourable treatment to other trading partners.

It said Canada imposed tariffs and quota restrictions on US motor vehicles that were not applied to imports from other countries and administered quotas in a manner that encouraged American manufacturers to invest in Canadian production instead of expanding facilities in the United States.

Canadian imports of US motor vehicles fell by approximately 22 per cent, or $5.6 billion, between April 2025 and March 2026 compared with the same period a year earlier, while imports from other countries increased to replace American exports, the White House said in a fact sheet.

The White House also cited restrictions on American alcoholic beverages, saying all but two Canadian provinces and territories halted the purchase, distribution or retail sale of US alcohol while maintaining access for products from other countries. It said Canadian imports of US alcoholic beverages declined by about 81 per cent, or $582 million, during the March 2025-February 2026 period compared with the previous year.

On dairy, the administration argued that Canada’s tariff-rate quota system for cheese under the USMCA was more restrictive than the quota system applied to similar European Union imports under the Canada-European Union Comprehensive Economic and Trade Agreement, placing American exporters at a competitive disadvantage.

The White House said that over the past year and a half, only two countries, China and Canada, had chosen to retaliate against Trump’s tariffs instead of negotiating trade agreements with Washington.

It said the administration had secured 18 trade deals that opened new markets for US exports but argued that Canada had “elected to discriminate against the United States rather than address Canadian trade barriers.”

The latest tariffs mark another significant step in the Trump administration’s use of trade measures to pursue its America First economic agenda.

IANS