US President Donald Trump has signed an executive order imposing additional 50% tariffs on a range of Canadian products, citing what the administration describes as discriminatory treatment of American goods and longstanding trade disputes involving the automotive, dairy and alcoholic beverage sectors.
The new measures are set to take effect in one month and mark the latest escalation in trade tensions between the United States and Canada.
Products affected by the tariffs
The new duties will apply to a broad range of goods, including:
- Wine
- Hockey sticks
- Cement
The tariffs will also cover certain products imported under the United States-Mexico-Canada Agreement (USMCA), the free trade pact linking the three North American countries.
However, several strategic sectors have been explicitly exempted, including:
- Energy
- Potash
- Fishery products
- Rare earth materials
Dairy dispute remains unresolved
Access for US dairy products to the Canadian market has been a recurring source of tension under the USMCA.
Washington has argued that Ottawa failed to honour commitments regarding market access. However, a dispute settlement panel established under the trade agreement ruled in favour of Canada in late 2023, upholding measures that limited tariff-free imports of US milk and dairy products.
The US administration subsequently launched additional procedures under the agreement, but the dispute remained unresolved.
Alcohol and automotive concerns
The latest disagreements also involve restrictions on American alcoholic beverages in Canada.
In many Canadian provinces, alcohol sales are controlled by public entities. Several provinces stopped purchasing US alcoholic products following the first round of Trump administration tariffs imposed on Canada in 2025.
In a statement released on Friday, US Trade Representative Jamieson Greer said Canada continues to retaliate against US efforts to rebalance trade.
Mr Greer argued that Canada has removed American alcoholic beverages from store shelves, granted better access to European dairy products and imposed limits affecting certain US automotive exports.
According to the statement, the new measures are intended to ensure that Canada "is held accountable".
Background to the trade tensions
Shortly after returning to the White House in 2025, President Trump imposed 25% tariffs on Canadian imports, arguing that Canada and Mexico were not doing enough to combat fentanyl trafficking and migration into the United States.
At the time, products covered by the USMCA, representing around 80% of Canadian exports to the US, were exempt.
Those tariffs were later overturned by the US Supreme Court in February 2026, which ruled that the president had exceeded his authority when imposing the non-sectoral duties.
Since then, the Trump administration has sought alternative mechanisms to restore tariffs, including a temporary 10% general tariff on imports.
Further measures expected
The temporary tariffs are due to expire on Friday, and the White House is expected to announce additional trade measures.
The administration has been conducting investigations into the trade practices of around 60 countries, including major US trading partners, as part of efforts to justify new tariffs.
Earlier this month, Brazil became the first country targeted under the latest trade measures, with a 25% tariff imposed on specific categories of exports to the United States.
President Trump also warned on Friday that Canada could face additional trade action over smoke from the hundreds of wildfires affecting parts of the country, which have impacted air quality across northeastern US cities.
Source: CNA
