US Imposes New 50% Tariffs On Canadian Goods; Wine, Dairy, Furniture Among Products Hit

The US has imposed 50 per cent tariffs on several Canadian products, citing trade practices related to auto, dairy and alcohol, while exempting sectors such as energy, potash and critical minerals

The White House said the decision was prompted by what it described as Canada's discriminatory trade policies towards American products.

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Key points generated by AI, verified by newsroom

• US announces 50% tariffs on numerous Canadian imports.
• White House cites Canada's discriminatory policies as justification.
• Tariffs impact Canadian wine, dairy, hockey sticks, cement.

US President Donald Trump has unveiled another round of trade measures against Canada, signing three proclamations that impose fresh 50 per cent tariffs on a range of Canadian imports.

According to Reuters, the measures have been introduced under Section 338 of the Tariff Act of 1930, a rarely used provision that authorises the US government to levy tariffs of up to 50 per cent on imports from specific countries. The new duties are due to take effect on August 19.

The White House said the decision was prompted by what it described as Canada's discriminatory trade policies towards American products.

Tariffs To Cover Consumer And Industrial Goods

The latest measures will affect a broad list of Canadian exports entering the United States.

According to a White House fact sheet, products including wine, dairy items, hockey sticks, cement, furniture, clothing, fishing rods, swimming pools, seeds and wigs will be subject to the new tariffs, reported The Financial Express.

The administration said the tariffs would apply even to goods that qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).

However, several key sectors have been left outside the scope of the latest action. Energy products, potash, fish, critical minerals and products already covered under existing Section 232 tariffs have been exempted.

A senior administration official said the three proclamations divide the affected products into separate categories.

“Each Section 338 proclamation imposes a 50% tariff on a different set of Canadian imports, covering products ranging from wine to hockey sticks to cement,” the official said.

Washington Blames Canadian Trade Restrictions

Explaining the move, the White House argued that Canada continues to maintain barriers that disadvantage American exporters.

The administration criticised Canada's dairy supply management system, calling it protectionist, and also objected to Canadian tariffs and quotas affecting US-built vehicles while allowing imports from certain other countries under different arrangements.

It also referred to the decision by most Canadian provinces to remove American alcoholic beverages from store shelves after earlier US tariff measures.

US Trade Representative Jamieson Greer said Canada's response to previous US actions had contributed to the latest decision.

“While the Administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national-security sensitive sectors,” Greer said.

White House Highlights Decline In US Exports

Alongside the tariff announcement, the White House released figures which it said reflected the impact of Canadian trade policies on American exports.

According to the administration, imports of US-made motor vehicles into Canada declined by 22 per cent over the past year, while purchases of American alcoholic beverages dropped by 81 per cent.

The latest trade action also follows Trump's recent criticism of Canada over wildfire smoke drifting into the United States. Earlier this month, the President suggested that the economic cost of dealing with the smoke could also be reflected in future tariff measures.

Talks Continue Despite Absence Of Formal Negotiations

Although trade tensions have intensified, officials said communication between Washington and Ottawa has not stopped.

A senior administration official told ABC News that both governments have continued exchanging proposals on trade barriers and economic cooperation, but discussions have yet to develop into formal negotiations.

“We’ve certainly shared ideas with them regarding Canadian trade barriers or practices that the United States would like to see remedied. They’ve shared ideas with us on the future of the trade relationship and how to enhance economic security in North America. So we certainly have had discussions, including substantive discussions. That being said, we’re not in a formal negotiating stage at this point,” the official said.

According to the White House, both countries remain engaged on issues affecting trade and North American economic security even as the latest tariff measures move towards implementation.