U.S. President Donald Trump is preparing to impose 50 per cent tariffs on a broad range of Canadian exports, marking a sharp escalation in the trade dispute between the two neighbouring countries.
The new duties will take effect in 30 days under three presidential proclamations. A senior U.S. administration official said the measures respond to Canada’s retaliation against American trade policies and its alleged discrimination against U.S. automobiles, dairy products and alcohol.
“This is not a trade war with Canada, these are defensive measures,” the official said during a conference call with reporters Monday afternoon.
Energy, potash, critical minerals and fish will remain exempt. Many other Canadian products currently entering the United States tariff-free under the Canada-United States-Mexico Agreement, known as CUSMA, will face the new rate.
The 50 per cent duty stands five times higher than the existing tariff on the limited share of Canadian exports that fail to meet CUSMA’s rules of origin.
CANADIAN WINE, DAIRY AND HOCKEY EQUIPMENT TARGETED
The tariffs will cover Canadian goods “ranging from wine to hockey sticks to cement,” the official said. The White House plans to release a complete list of affected products.
“By doing this, President Trump is levelling the playing field for crucial American exports,” said the official.
The dairy category includes Canadian milk, cream, molasses and other dairy products. Alcohol products facing the 50 per cent rate include beer, wine, cider, whisky and other spirits.
The same list also covers “ice-hockey and field-hockey articles and equipment (other than balls and skates).”
The automotive-sector proclamation contains the largest list, covering more than 350 items across 18 pages. Despite the category’s name, the proposed duties will not apply to vehicles or auto parts.
Products listed under the automotive proclamation include Canadian honey, sculptures, fishing rods, dog leashes and down jackets.
CUSMA NEGOTIATIONS REMAIN STALLED
“President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hardworking Americans,” the White House said in a statement.
The tariff announcement comes as negotiations between Canada and the United States over proposed amendments to CUSMA remain stalled.
Once implemented, the duties would remove tariff-free access for many qualifying Canadian products and place added pressure on exporters serving the U.S. market.
The 30-day window leaves time for further negotiations before the tariffs take effect. The White House’s forthcoming product list will provide Canadian businesses with a clearer picture of which exports face the new duties and the potential financial impact.
