OTTAWA (dpa-AFX) - Monday, President Donald Trump signed three Proclamations pursuant to Section 338 of the Tariff Act of 1930 to impose additional 50 percent tariffs on a wide range of goods imported from Canada.
Trump said he imposed the heavy tariff in retaliation for what he called 'Canada's discriminatory treatment of American products' such as cars, dairy and alcohol.
'By doing so, President Trump is offsetting the burden and disadvantage on U.S. commerce from Canada's discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports-cars, alcohol, and dairy,' the White House said.
Each Section 338 proclamation imposes a 50 percent tariff on a different set of Canadian imports, covering products ranging from wine to hockey sticks to cement.
These tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement.
It will not apply to energy, potash, products subject to tariffs under Section 232, and certain other goods, such as fish or critical minerals.
The tariffs will take effect 30 days after signing the proclamation, and are designed to offset the burden and disadvantage on U.S. commerce from Canada's discrimination.
Canada imposes certain tariffs and quotas on cars imported to Canada from the U.S., but not on imports from other countries. Canada also administers these quotas in a way that compels U.S. auto companies to invest in production in Canada instead of the United States.
From April 2025 through March 2026, Canadian imports of U.S. motor vehicles decreased by approximately 22 percent, or $5.6 billion, compared to the same period in 2024-2025. Exports of motor vehicles from other countries to Canada have increased to meet the demand previously filled by U.S. exports.
All but two Canadian provinces and territories have halted the purchase, distribution, or retailing of U.S. alcoholic beverages, and have not imposed similar restrictions on other countries.
From March 2025 through February 2026, Canadian imports of U.S. alcoholic beverages decreased by about 81 percent, or $582 million, compared to the same period in 2024-2025, according to the White House.
As part of its complicated and protectionist dairy system, Canada established tariff-rate quotas on U.S. cheese that are much more restrictive than the tariff-rate quotas imposed on similar imports of cheese into Canada from the EU, despite Canada having trade agreements with both the U.S. and the EU.
Over the past year and a half, only two countries have chosen to retaliate against President Trump's tariffs rather than negotiate a deal with the United States: China and Canada.
Canada imposed a 25 percent duty on more than $21 billion worth of American goods, including cars, steel and aluminum.
As the U.S. action is set to trigger a major escalation in trade tensions with Canada, Canadian Prime Minister Mark Carney retaliated by saying, 'This is the latest in a series of unilateral US trade actions that began with the US imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement.'
At the same time, Carney said in a statement on X that his government is ready to intensify trade talks with Washington in the coming weeks.
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