Trump Imposes 50% Tariffs on Canadian Autos, Dairy and Alcohol

President Donald Trump signed three proclamations on Monday imposing 50% tariffs on a broad range of Canadian goods, citing what the administration called continued discrimination against US products.

Wide Range of Goods Affected

A senior administration official said the tariffs would touch products “ranging from wine to hockey sticks to cement.” The proclamation covering automobiles alone spanned 18 pages of eligible goods. The White House estimates the tariffs will cover roughly $20 billion worth of Canadian exports, including electrical equipment and machinery, marking one of the steepest tariff actions the administration has taken against any trading partner.

Legal Basis and Timeline

The tariffs rely on Section 338 of the Tariff Act of 1930, a rarely used provision allowing duties up to 50% against countries accused of discriminating against US goods. The measure will take effect in 30 days, leaving a window for further negotiation. Officials noted the action applies even to goods previously protected under the US-Mexico-Canada Agreement, which lapsed earlier this summer.

Exemptions Carved Out

Certain goods will avoid the new duties, including oil, potash, fish, critical minerals, and products already subject to national security tariffs such as steel and many auto parts.

 Trump crossed paths with Canadian Prime Minister Mark Carney on Sunday;

Canada’s Response

Canadian Prime Minister Mark Carney said the country remains committed to free and fair trade but would take steps necessary to support Canadian workers and businesses. Ontario Premier Doug Ford called for direct retaliation, urging Canada to match the tariffs dollar for dollar.