Washington, Jul 21 (V7N) – The United States has announced a new 50 percent tariff on a range of Canadian imports, with President Donald Trump accusing Ottawa of maintaining discriminatory trade practices against American products, further escalating tensions between the two North American neighbors.
According to an executive order issued by President Trump on Monday (July 21), the new tariffs will take effect within the next 30 days. A White House statement said the duties will apply to several Canadian products, including wine, hockey sticks, cement and other goods.
The administration said the decision was prompted by what it described as Canada's discriminatory treatment of American alcohol, automobiles and dairy products.
To implement the measure, the White House is invoking Section 338 of the Tariff Act of 1930, a provision that has never previously been used in this manner. The move follows a US Supreme Court decision earlier this year that struck down several tariffs imposed by the Trump administration.
The White House clarified that the new tariffs will not apply to energy products, potash or goods already covered by existing sector-specific tariffs. However, many products traded under the United States-Mexico-Canada Agreement (USMCA) will be subject to the new 50 percent duty.
Responding to the announcement, Canadian Prime Minister Mark Carney described the measure as a "direct violation" of the USMCA. He said Canada remains prepared to continue negotiations with Washington in an effort to resolve the growing trade dispute.
Business groups in both countries have expressed concern that the latest tariffs could further strain economic ties and disrupt cross-border trade.
Since returning to office, President Trump has pursued an aggressive tariff policy targeting several US trading partners. While most goods entering the United States under the North American trade agreement had previously remained exempt, the latest move marks a significant expansion of those measures.
The White House also pointed to Canada's decision to impose retaliatory measures against US tariffs last year, saying Canada and China were the only two countries to respond in that manner. It further cited the removal of American alcoholic beverages from store shelves in several Canadian provinces following Trump's earlier tariff threats and his remarks about Canada becoming the "51st state."
US Trade Representative Jamieson Greer accused Canada of limiting market access for American products by removing US alcohol from retail outlets, expanding access for European Union dairy products, and restricting vehicle exports by automakers that shifted production back to the United States.
Greer said the new tariffs are intended to hold Canada accountable for what the administration described as its "retaliatory and discriminatory" trade practices.
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