US President, Donald Trump has imposed a 50% tariff on a wide range of goods imported from Canada, in retaliation for what he called unequal treatment of US cars, dairy and alcohol.
It was gathered that everyday consumer items like wine and hockey sticks and industrial goods such as cement are among the goods targeted.
Also, several key exports will be spared, such as energy, potash, critical minerals and fish.
Canadian Prime Minister, Mark Carney responded by saying Canada stood ready to intensify trade talks with the US in the coming weeks, but the White House said the duties would take effect in 30 days.
It marks a major escalation in trade tensions between the North American neighbours.
Canada was one of the few countries to retaliate in 2025 against Trump’s tariffs, placing a 25% levy on about C$30 billion worth of US goods.
Carney later dropped some of them but kept tariffs on US cars, steel and aluminium.
The US Supreme Court ruled earlier this year that many of Trump’s tariffs imposed globally under emergency powers were illegally enacted. But his latest action on Monday night uses a different, obscure law that is untested in court.
The new duties apply to all covered goods regardless of whether the product was included under the existing free trade agreement between Canada, the US and Mexico, known as the USMCA.
He also cited “threats to Canadian sovereignty”, a possible reference to Trump’s calls to make America’s northern neighbour the 51st US state.
Monday’s import taxes build on trade barriers already in place between the two nations.
The US has been maintaining active tariffs ranging from 15% to 50% on Canadian steel, aluminium and copper. Washington also charges a 35% tariff on Canadian softwood lumber, alongside a 25% tax on non-US parts in cars.
Canada has its own 25% counter-tariff on selected imports of American steel, aluminium and vehicles.
