The Trump administration said Monday that it will impose an additional 50% tariff on select Canadian goods entering the United States, arguing the move is a response to Canada’s retaliation against Trump’s 2025 tariffs.
During an afternoon call with reporters, a senior administration official said the new tariffs are intended to “hold” Canada “accountable” for what the official described as its “substantial retaliation against the United States as the U.S. imposes trade actions to reindustrialize, reshore, and support its manufacturing.”
“For example, one of the things that has happened is that all but two Canadian provinces and territories have halted the purchase, distribution, or retailing of U.S. alcoholic beverages, but they have not imposed similar restrictions on other countries,” the senior administration official said.
The official also cited Canada’s tariffs on certain American cars, along with tariffs and trade quotas tied to dairy, as examples of measures the administration views as unfair to U.S. exporters.
The new duties apply to a broad range of Canadian imports, including dairy products, alcoholic beverages and alcohol-related goods, as well as some food products.
Other affected categories include construction materials, clothing, furniture, technology products and auto parts.
President Trump signed three proclamations Monday under Section 338 of the Tariff Act of 1930, placing “additional 50% tariffs on certain goods of Canada in response to these discriminatory measures,” the senior administration official said.
“By doing this, President Trump is leveling the playing field for crucial American exports: motor vehicles, alcohol, and dairy,” the senior administration official said.
The tariffs will take effect 30 days from now.
“Each Section 338 proclamation imposes a 50% tariff on a different set of Canadian imports, covering products ranging from wine to hockey sticks to cement,” the senior administration official said.
The official noted that the tariffs apply even to goods covered by the U.S.-Mexico-Canada Agreement (USMCA). There are some goods which are exempted, according to the U.S. official, those include: “energy, potash products subject to tariffs under Section 232, and certain other goods such as fish or critical minerals.”
“So, so we are trying to be again very. very tailored to the volume of trade and the and the harm that that affects that that is that affects U.S. trade under these discriminatory rules,” the senior administration official said when asked what goods are covered.
The 50% tariff is a pretty hefty duty on Canadian goods – the senior administration official noted that it’s the highest rate the president can impose under Section 338.
When asked where trade talks between the U.S. and Canada currently stand, the U.S. official said that while teams have “substantive discussions,” there are not currently any formal negotiations.
“We’ve certainly shared ideas with them regarding Canadian trade barriers or practices that the United States would like to see remedied. They’ve shared ideas with us on the future of the trade relationship and how to enhance economic security in North America. So we certainly have had discussions, including substantive discussions. That being said, we’re not in a formal negotiating stage at this point,” the senior administration official said.
These are not the tariffs that Trump called for in a social media post on Friday, criticizing America’s northern neighbors for the smoke that covered American cities, coming from Canadian wildfires.
The senior administration official said that the president has “asked for options on that, and options are being shared with him.”
This is a developing story. Please check back for updates.
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