U.S. President Donald Trump on Monday imposed 50% tariffs on most Canadian goods. He accused Canada of unfair discrimination against American automobiles, alcohol, and dairy products.
The new duties do not apply to energy products, potash, fish, and critical minerals. However, they affect goods previously protected by the USMCA agreement.
The tariffs are imposed under Section 338 of the Trade Act of 1930. They will take effect in 30 days, leaving time for negotiations.
Canadian Prime Minister Mark Carney stated that his government believes in the benefits of free and fair trade. Canada is ready for intensive negotiations with the Trump administration.
"This trade dispute has increased costs for families, especially in the United States," Carney noted. He emphasized Canada's readiness to resolve issues to the mutual benefit of citizens of both countries.
Ontario Premier Doug Ford called for a mirrored response: "If these tariffs go into effect, Canada must respond with a tariff for a tariff, dollar for dollar."
Canadian Chamber of Commerce CEO Candice-Langlois called the administration's steps "regrettable" but urged using the 30-day period to advance negotiations.
The use of a Great Depression-era law expands risks: similar measures could affect other U.S. trading partners, introducing "widespread uncertainty" into the global economy, noted Cato Institute expert Scott Lincicome.
Trump has targeted Canada on trade issues before. Earlier, he threatened additional tariffs due to wildfires affecting air quality in the U.S.
