Trump invokes century-old trade law to impose 50 per cent tariffs on Canadian goods
New duties affect approximately $20 billion in imports, marking the first recorded use of Section 338 of the Tariff Act of 1930 in nearly 100 years.
United States President Donald Trump has imposed 50 per cent tariffs on a broad range of Canadian imports, citing discriminatory treatment by Ottawa against American alcohol, automobile, and dairy products. The measures, announced on Monday, are scheduled to take effect in 30 days and affect approximately $20 billion in imports, representing roughly 5.2 per cent of the $382 billion in goods the US imported from Canada in 2025.
The administration invoked Section 338 of the Tariff Act of 1930, marking the first recorded use of the law in nearly a century. The legislation permits the president to impose punitive tariffs of up to 50 per cent against trading partners deemed to have discriminated against US goods. The affected items include wine, hockey sticks, cement, dairy products, swimming pools, furniture, fishing rods, seeds, clothing, and wigs.
US Trade Representative Jamieson Greer stated that the tariffs aim to hold Canada accountable for its retaliation and discriminatory practices. Greer argued that Canada removed US alcohol from shelves, granted better market access to European Union dairy, and capped US vehicle exports from companies reshoring to the United States. The White House also noted that Canada was the only country, other than China, to retaliate against Trump’s tariffs last year.
Canadian Prime Minister Mark Carney condemned the move as a violation of the United States-Mexico-Canada Agreement (USMCA). In a statement posted on his X account, Carney described the tariffs as the latest in a series of unilateral US trade actions. He stated that Canada has made comprehensive proposals to resolve the dispute and modernise the agreement, adding that Ottawa stands ready to intensify discussions in the coming weeks.
The new duties will not apply to oil, gas, critical minerals, potash, or goods already subject to sector-specific tariffs. However, previous tariffs ranging from 15 to 50 per cent remain active on Canadian copper, aluminium, and steel, alongside a 25 per cent tax on non-US car parts. The White House claimed the US did not agree to renew the USMCA in its current form because the deal is not sufficiently beneficial for the United States.
