The United States has announced a fresh round of 50 per cent tariffs on certain Canadian imports, accusing Ottawa of discriminating against American goods in sectors including motor vehicles, dairy and alcoholic beverages. The new measures are scheduled to come into effect 30 days after President Donald Trump signed the proclamations.

According to a White House fact sheet released on Monday, the tariffs have been imposed under Section 338 of the Tariff Act of 1930 and are intended to offset what Washington described as the burden placed on US commerce by Canada’s trade practices while creating a “level playing field” for American exporters.

New Tariffs to Cover Wide Range of Canadian Goods

President Trump signed three separate proclamations under Section 338, each imposing an additional 50 per cent tariff on a different category of Canadian imports.

The White House said the measures would affect a broad range of products, including wine, hockey sticks and cement. It added that the tariffs would apply to all covered goods, irrespective of whether they qualify under the US-Mexico-Canada Agreement (USMCA).

However, the administration said the new duties would not apply to energy products, potash, goods already subject to Section 232 tariffs, or certain other products such as fish and critical minerals.

Washington Alleges Discriminatory Trade Practices

The White House accused Canada of maintaining trade barriers that disadvantage American exporters, particularly in the automotive sector.

According to the fact sheet, Canada imposes tariffs and quotas on vehicles imported from the United States while exempting imports from other countries. It also alleged that the quota system encourages US automobile manufacturers to invest in production facilities in Canada instead of the United States.

The administration also pointed to declining Canadian imports of American goods as evidence of discriminatory treatment.

It said imports of US motor vehicles fell by about 22 per cent, or approximately USD 5.6 billion, compared with the corresponding period in 2024-25. It also stated that Canadian imports of American alcoholic beverages declined by around 81 per cent, or USD 582 million, between March 2025 and February 2026 compared with the same period a year earlier.

White House Defends Tariff Decision

The fact sheet said only China and Canada had retaliated against tariffs introduced by the Trump administration over the past one-and-a-half years.

Defending the latest measures, the White House said the tariffs were intended to make the United States “wealthier and stronger” by countering the burden on US commerce arising from Canada’s “discriminatory treatment of U.S. commerce”.

“President Trump’s tariffs have resulted in 18 deals opening new markets for U.S. exports and bringing reciprocity back to America’s trade relations. Yet Canada has elected to discriminate against the United States rather than address Canadian trade barriers,” the statement said.

The White House noted that Section 338 of the Tariff Act of 1930 authorises the President to impose tariffs when another country disadvantages US exporters relative to exporters from other nations.

Move Comes Amid Growing US-Canada Tensions

The latest tariff announcement comes shortly after President Trump said he had spoken with Canadian Prime Minister Mark Carney regarding wildfire smoke drifting across the border into the United States.

Trump had urged Canada to take stronger measures to contain the wildfires, warning that Ottawa could otherwise face potential economic consequences, adding another point of friction to the already strained trade relationship between the two countries.

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