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US to impose 50% tariffs on Canadian goods

Financial Times Companies •
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The US announced 50% tariffs on a broad range of Canadian products, accusing the country of unfair trade practices such as halting purchases of US alcohol, imposing tariffs on US cars and discriminating against American cheese. A senior administration official noted that only China and Canada had retaliated against the US under Donald Trump’s earlier trade policy. The duties take effect in 30 days, with exemptions for energy, potash, critical minerals, fish, steel and aluminium, but goods covered by the USMCA will not receive carve‑outs.

The published list targets milk and dairy, alcoholic drinks, clothing and furniture. The Canadian dollar slipped to C$1.41 per US dollar. Prime Minister Mark Carney said Canada remains ready to negotiate, while Ontario Premier Doug Ford called for a tariff‑for‑tariff response.

The Canadian Chamber of Commerce labeled the move a “regrettable escalation” and urged talks within the 30‑day window. The administration will invoke Section 338 of the 1930 Tariff Act—never before used for duties on a trading partner—and stressed the measures are separate from any wildfire‑related threats.