Trump slaps 50% tariffs on Canada and Carney vows to ‘intensify’ trade talks
4 hours ago
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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
Everyday consumer items like wine and hockey sticks and industrial goods such as cement are among the goods targeted. However, several key exports will be spared, such as energy, potash, critical minerals and fish
Prime Minister Mark Carney responded by saying Canada stood ready to “intensify” trade talks with US in the coming weeks
The White House said the duties would take effect in 30 days and mark a major escalation in trade tensions between the North American neighbours
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
“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,” Carney said in a statement on X
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
Monday’s announcement comes in the wake of President Trump’s threat to impose tariffs over Canadian wildfire smoke drifting into US cities
Canadian wildfires rage as Trump warns Carney again over ‘poisoning’ US air
But there is no mention of wildfires in the executive orders that Trump signed on Monday
Instead, the three proclamations list US trade irritants that were previously known to Canada related to cars, dairy and alcohol – signalling a breakdown of trade negotiations between the two countries
On cars, Trump is accusing Canada of charging a tax on US motor vehicles and parts that are not covered under USMCA
He argues it is “unreasonable” and that Canada has discriminated against the US by not charging other countries a similar tax
Automotive manufacturing in North America is highly integrated between Canada, the US and Mexico
But Trump’s Commerce Secretary Howard Lutnick has said in the past that he believes Canada should “come second” to the US
Trump has also named cars in the past as one issue where the two countries have competing interests
Dairy, meanwhile, has long been a problem for the US, specifically Canada’s supply management system, which sets limits on foreign imports. Those that exceed the limit are charged a tariff upwards of 300%
And lastly, the enduring boycott of US alcoholic drinks by most Canadian provinces has become a major sore point for the Americans since it was imposed last year
Canadian premiers have said repeatedly that the boycott will be lifted if the US removes its tariffs on key Canadian sectors, including metals and automobiles
Canadian trade negotiators have been trying to secure a deal that would at least reduce some of the current US tariffs
The BBC has contacted the White House and the Canadian government for comment
US blocks long-term renewal of North American trade deal
Earlier this year, the US chose not to renew the USMCA in its current form
Canada and Mexico sought a renewal of the trade agreement, but the US wants to make changes to the deal, which was negotiated during Trump’s first term in office
As it stands, the treaty will continue to govern North American trade over the next decade on a rolling basis, requiring annual reviews
In February, the US Supreme Court struck down sweeping international tariffs imposed by Trump through the International Emergency Economic Powers Act of 1977
The justices ruled that the president had exceeded his authority when he announced the duties under a law reserved for national emergencies
The White House vowed at the time that it would invoke other mechanisms to impose import taxes
The duties announced on Monday were introduced under Section 338 of the 1930 Tariff Act, which covers trade discrimination rather than national emergencies
Candance Laing, head of the Canadian Chamber of Commerce, called the latest tariffs a “regrettable decision”, and urged officials to make “meaningful progress” in talks before the new duties take effect in 30 days’ time
Chris Swonger, head of the Distilled Spirits Council of the United States, also called for both sides to find a solution, warning the decision “raises the risk of further retaliation”
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