U.S. President Donald Trump has imposed a 50% tariff on a broad range of Canadian imports, citing what the White House described as Canada's "discriminatory treatment" of American automobiles, alcohol and dairy products.

Trump signed three proclamations under Section 338 of the Tariff Act of 1930, a law that allows the United States to impose tariffs of up to 50% on imports from specific countries. 

The tariffs will take effect on 19 August and apply to products including wine, hockey sticks, cement, dairy products, furniture, clothing, fishing rods, swimming pools, seeds and wigs. The measures will apply regardless of whether products qualify under the U.S.-Mexico-Canada Agreement (USMCA).

Energy products, potash, fish, critical minerals and products already subject to Section 232 tariffs are exempt from the new duties.

White House cites autos, dairy and alcohol policies

The White House said the tariffs were imposed in response to what it described as Canadian trade practices affecting U.S. dairy, automotive and alcohol exports. 

According to the administration, Canada maintains a protected dairy system and applies tariffs and quotas on certain U.S. vehicle imports. The White House also cited restrictions on the sale of American alcoholic beverages in most Canadian provinces, measures introduced after previous U.S. tariffs.

The administration said Canadian imports of U.S. motor vehicles declined by 22% over the past year, while imports of American alcoholic beverages fell by 81%. 

"Canada, unlike other partners and allies, continues to retaliate against the United States," U.S. Trade Representative Jamieson Greer said in a statement.

U.S.-Canada tariff dispute since 2025

Trade tensions between Washington and Ottawa intensified after Trump returned to office in January 2025. On 1 February, the U.S. announced tariffs of 25% on most Canadian imports and 10% on Canadian energy products. The measures were justified by the administration as part of efforts to address border security and fentanyl trafficking concerns. 

Canada responded by announcing retaliatory tariffs on U.S. goods worth up to C$155 billion. Former Prime Minister Justin Trudeau said the measures would target products including alcoholic beverages, clothing and household goods. 

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In March 2025, U.S. tariffs on Canadian imports took effect. Canada subsequently announced additional countermeasures and imposed tariffs on a range of American goods after Washington introduced tariffs on steel and aluminium imports.

Later in March, the Trump administration granted exemptions for many goods covered by the USMCA, while Canada suspended part of its planned retaliatory response. Trade disputes involving autos, dairy products, steel, aluminium and alcoholic beverages nevertheless remained points of contention between the two governments.

Canada yet to comment

The office of Canadian Prime Minister Mark Carney did not immediately respond to requests for comment following Monday's announcement.

The tariffs were announced days after Trump criticised Canada over wildfire smoke affecting parts of the United States and said his administration was examining additional measures related to the issue. 

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The latest tariffs represent the most recent development in an ongoing trade dispute between the United States and Canada that has included multiple rounds of tariffs and retaliatory measures since early 2025. 

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