President Donald Trump has signed an executive action imposing an additional 50% tariff on a wide range of Canadian imports, with the Trump administration saying the move is a response to what it described as “discriminatory” Canadian trade practices affecting several US industries.
According to senior administration officials, Trump signed three proclamations on Monday formalizing the tariffs under Section 338 of the Tariff Act of 1930, also known as the Smoot-Hawley Tariff Act. The new duties are scheduled to take effect 30 days after they were signed.
The move comes amid renewed trade tensions between the United States and Canada. Administration officials also noted that Trump had previously threatened tariffs in response to wildfire smoke entering the United States from Canada, although they said separate tariff measures are being explored regarding the wildfire issue.
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Which Canadian Products Are Affected?
Officials said the new 50% tariffs will apply to a broad range of Canadian imports, including products ranging from wine, hockey sticks and cement to other goods covered under the three proclamations.
However, the administration said several categories are exempt from the new tariffs. These include energy, potash, fish and critical minerals, among other products.
The White House said the tariffs were introduced in response to Canadian trade practices involving US alcohol, automobiles and dairy products.
According to administration officials, all but two Canadian provinces have halted purchases of alcohol from the United States while continuing to buy alcohol from other countries. Officials also said Canada imposes tariffs on automobiles imported from the US but not on vehicles from other countries. In addition, they said Canada’s tariff-rate quotas on US cheese are more restrictive than those applied to imports from the European Union.
“By doing this, President Trump is leveling the playing field for crucial American exports: motor vehicles, alcohol, and dairy,” one administration official said during a call with reporters.
The administration noted that the tariffs are being imposed under the Tariff Act of 1930, rather than through the emergency powers statute that Trump previously used for tariffs before that approach was blocked by the US Supreme Court in February.