Trump orders 50% tariff on most Canadian goods

President Donald Trump, Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney at World Cup final

(Image credit: Odd Andersen / AFP via Getty Images)

What happened

President Donald Trump on Monday signed proclamations imposing 50% tariffs on a wide range of Canadian imports, claiming that America’s second-largest trading partner has unfairly discriminated against U.S. cars, alcohol and dairy products. The tariffs, set to take effect in 30 days, rely on Section 338 of the Tariff Act of 1930, which has never been used to levy import duties and is untested in court. Some products, like energy, would be exempt, but the new tax will apply to goods that comply with the U.S.-Mexico-Canada free trade agreement, the White House said in a fact sheet.

The new tariffs “could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations” with Canada, The Associated Press said. A senior administration official “said that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable.” Canadian Prime Minister Mark Carney said that “Canada, as is its right,” had “merely matched” Trump’s tariffs, but his country “stands ready to engage intensively” to address a “trade dispute” that “has raised costs for families, particularly in the U.S.”

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.