United States President Donald Trump has signed an executive order imposing a 50 per cent tariff on a broad range of imports from Canada, escalating trade tensions between the two neighbouring countries.
The new duties will take effect on August 19 and target products ranging from consumer goods such as wine and hockey sticks to industrial items including commercial cement.
However, key Canadian exports such as energy, potash, critical minerals and fish have been exempted from the latest tariffs.
According to the White House, the measures are aimed at protecting American businesses from what it described as Canada’s “unequal treatment” of US automobiles, dairy products and alcoholic beverages.
The latest tariffs add to existing US duties of between 15 and 50 per cent on Canadian steel, aluminium and copper, a 35 per cent tariff on softwood lumber, and a 25 per cent levy on non-US vehicle parts.
Canada currently imposes 25 per cent retaliatory tariffs on selected US imports, including steel, aluminium and vehicles.
Although Trump recently threatened tariffs over wildfire smoke drifting from Canada into the United States, the executive order made no reference to the issue.
Instead, Washington cited longstanding trade disputes involving Canada’s automotive policies, dairy supply management system and provincial boycott of US alcoholic beverages.
The US argues that Canada’s taxes on certain American vehicles and auto parts not covered under the US-Mexico-Canada Agreement (USMCA) unfairly discriminate against US manufacturers.
Washington also criticised Canada’s dairy import quota system, which imposes tariffs of more than 300 per cent on imports exceeding quota limits.
In addition, the White House pointed to the continued removal of US alcoholic beverages from store shelves in several Canadian provinces, describing the boycott as another trade barrier.
Canadian officials have maintained that the boycott will remain until the United States removes tariffs on major Canadian exports, including metals and automobiles.
The latest measures are expected to further strain ongoing trade negotiations between both countries, with hopes of easing existing tariffs now appearing increasingly uncertain.
