Trump unleashes fresh tariff wave on Canada, deepening North American trade rift

A fresh storm has swept across North American trade relations as US President Donald Trump imposed an additional 50 per cent tariff on hundreds of Canadian products, accusing Ottawa of unfairly restricting American exports of automobiles, alcohol and dairy goods.

Invoking Section 338 of the Tariff Act of 1930, Trump signed three proclamations introducing the new duties, with the White House framing the move as an attempt to “level the playing field” for American businesses and counter what it described as Canada’s discriminatory trade practices.

The tariffs are set to take effect 30 days after being signed and will apply even to goods that qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA). However, key sectors such as energy, potash, fish, critical minerals and products already covered under separate Section 232 tariffs have been excluded.

The sweeping measures target a wide array of Canadian imports, from wine and hockey sticks to cement and consumer goods, with hundreds of product categories listed for the additional levy.

The White House accused Canada of maintaining policies that favoured other trading partners over American exporters, particularly in the automotive, alcohol and dairy sectors.

According to the administration, Canadian restrictions on US-made vehicles contributed to a sharp decline in American auto exports, with imports of US motor vehicles falling by about 22 per cent, or $5.6 billion, between April 2025 and March 2026 compared with the previous year.

Washington also pointed to Canada’s treatment of American alcoholic beverages, claiming that most Canadian provinces restricted the purchase, distribution or sale of US alcohol while allowing greater access for products from other nations. The administration said imports of American alcoholic beverages dropped by around 81 per cent, or $582 million, during the March 2025-February 2026 period.

On dairy, the White House alleged that Canada’s tariff-rate quota system for US cheese exports placed American producers at a disadvantage compared with exporters from the European Union.

The latest move marks another escalation in Trump’s aggressive trade strategy, as his administration continues to use tariffs as a tool to pressure trading partners and advance its “America First” economic agenda.

The White House said that while several countries had reached trade agreements with Washington, Canada and China had chosen retaliation over negotiations, accusing Ottawa of failing to address long-standing trade barriers.

With the new duties set to take effect in the coming weeks, the latest tariff salvo threatens to deepen tensions between two of North America’s closest economic partners.

With IANS inputs