US raises pressure on Canada with new tariff action

WASHINGTON: A new tariff showdown is brewing between Washington and Ottawa after the Trump administration moved to impose 50% duties on Canadian goods, marking the latest escalation in a growing trade dispute between the two North American allies.

Senior US administration officials said President Donald Trump signed three separate proclamations on Monday introducing additional tariffs on Canadian imports linked to disputes involving motor vehicles, alcohol and dairy products.

The new tariffs, imposed under the rarely used Section 338 of the Tariff Act of 1930, are scheduled to take effect 30 days after the proclamations are signed, according to officials.

The measures will apply to all covered Canadian goods, including products that are otherwise included under the United States-Mexico-Canada Agreement (USMCA), officials said.

A senior administration official said Canada must be held accountable for what Washington described as “continued discrimination” against US products and industries. The affected goods include a wide range of items, from wine and cement to hockey sticks and other Canadian exports.

Ontario Premier Doug Ford signaled that Canada could respond if the tariffs move forward, saying Ottawa should consider matching the US action.

“Canada should respond tariff for tariff, dollar for dollar,” Ford said in a statement shared on X.

The Canadian Embassy in Washington did not immediately issue a response to the new tariff announcement.

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The latest decision adds further strain to the economic relationship between the United States and Canada, traditionally among each other’s closest trading partners.

Trade tensions intensified last year after the Trump administration introduced tariffs on Canadian goods, prompting retaliatory measures from Ottawa.

Earlier this month, Washington announced it would not renew the current trade agreement framework without further review, creating uncertainty over the future of the USMCA, the trade pact linking the United States, Canada and Mexico.

The tariff announcement also comes amid broader disagreements between the two countries, including tensions over wildfires in Canada that caused air quality concerns in several parts of the United States.

Trump had previously suggested that the economic impact of the wildfires could be considered in future tariff decisions. However, a senior administration official clarified that the newly announced 50% tariffs were not connected to the wildfire issue, while adding that Trump had requested additional options on the matter.

The Trump administration is using Section 338 of the Tariff Act of 1930, which allows the US president to impose tariffs of up to 50% on imports from countries found to discriminate against American commerce.

The provision has rarely been applied in recent decades. Legal experts John Veroneau and Catherine Gibson noted in a 2016 analysis that the authority had remained unused for decades, with no publicly recorded action under Section 338 after 1949.

The latest tariff measures are expected to increase uncertainty for businesses operating across North America, with attention now focused on Canada’s possible response and the broader impact on future trade relations between the two countries.