Trump imposes 50% tariffs on most Canadian products

The decision was confirmed to the international press by a member of the US government, who spoke on condition of anonymity. According to him, Canada was one of the few trading partners of the United States, besides China, to retaliate against tariffs previously applied by Trump and, therefore, should be held responsible.

Trump signed three decrees to enable the new charges based on Section 338 of the Tariff Act of 1930, a provision that allows the imposition of duties against countries accused of harming North American trade.

Tariffs will not be applied to energy products, potash, fish, minerals considered critical and certain goods that are already subject to other commercial charges.

On the other hand, the measure will reach Canadian products even when they fall under the rules of the United States-Mexico-Canada Agreement, known by the acronym USMCA.

The trade pact, signed in 2020, underwent a review in 2026. If the three countries do not agree to renew it, the agreement could expire in 2036.

In a statement, the White House said the tariffs will take effect within 30 days and will affect products ranging from wine and hockey sticks to cement.

In the decrees, Trump argues that Canada imposes unfavorable treatment on automobiles, alcoholic beverages and cheese produced in the United States. Part of the measures cited by Washington, however, were adopted by the Canadian government as a response to North American tariffs.

Previously, Trump had taxed products from Canada under the argument that the neighboring country should intensify the fight against fentanyl trafficking across the border with the United States.

The North American president also asked his advisors to evaluate the possibility of imposing new tariffs on Canada because of the impacts of smoke from Canadian forest fires on air quality in North American territory.

Trump had already threatened to punish the neighboring country commercially in social media posts, in which he held the Canadian government responsible for the effects of the fires.

Canadian Prime Minister Mark Carney has openly confronted the North American president and sought to expand the country's trade relations with other markets.

During the World Economic Forum, held in January in Davos, Switzerland, Carney criticized, without directly mentioning Trump, the use of the economy by great powers as an instrument of pressure against less powerful countries.

At the time, Trump responded by stating that “Canada exists thanks to the United States”.

In the decree related to the automotive sector, the North American president highlighted that Canada has maintained, since April 2025, a 25% tariff on vehicles produced in the United States that do not receive preferential treatment within the USMCA rules.

Regarding alcoholic beverages, the White House stated that almost all Canadian provinces and territories have stopped the purchase and sale of North American products.

The Canadian decision was adopted in response to Trump's tariffs and the Republican's statements about turning Canada into the 51st state of the United States.

In February, the US Supreme Court ruled that Trump did not have the authority to impose certain tariffs based on the declaration of an economic emergency. Since then, the government has started to look for other legal grounds to raise taxes on imports.

Tariffs are charged on products entering the country, but the costs can be passed on by companies to consumers through increased prices.

Trump argues that rising import costs will encourage companies to transfer part of their production to the United States. To date, however, economic indicators show little evidence of large-scale industrial migration.

The new measures also pose political and economic risks for the government ahead of November's legislative elections, which will define which party will have control of Congress.

The tariffs announced on the so-called “Liberation Day” in April last year caused instability in financial markets amid fears of rising inflation and a recession. After the negative reaction, Trump temporarily suspended part of the charges to make room for negotiations.

The new round of taxes on foreign products comes at a time of accelerating annual inflation in the United States. Tariffs and the war in Iran have contributed to raising the prices of oil and other goods.

During the 2024 presidential campaign, Trump presented reducing the cost of living as one of his main promises.