Trump Slaps 50% Tariffs on Canadian Goods, Triggering Economic and Political Shockwaves

President Donald Trump has imposed 50 percent tariffs on most Canadian goods, accusing Canada of unfairly discriminating against American autos, alcohol and dairy products. The sweeping move threatens to unleash fresh economic turmoil, raising the risk of higher inflation and straining one of the United States’ closest bilateral relationships.

A senior administration official, speaking anonymously while previewing the decision, said Canada was among the few nations aside from China that retaliated against Trump’s earlier tariffs and “must be held accountable.” The official confirmed that Trump signed three proclamations invoking Section 338 of the 1930 Trade Act, a rarely used authority that some lawmakers attempted to repeal last year over fears it could destabilise the economy.

The new 50 percent tariffs would exclude energy products, potash, fish and critical minerals, but they would include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That 2020 trade pact was not renewed by the US, triggering a new set of negotiations that could run until 2036.

The White House said in a fact sheet that the tariffs would go into effect in 30 days and cover “products ranging from wine to hockey sticks to cement.”

The new tariffs carry serious political and economic risks for Trump ahead of the November midterm elections for control of Congress. His “Liberation Day” tariffs last year in April provoked a financial market meltdown over concerns about inflation and a recession, prompting him to walk back the rates for a period of negotiation.

The Supreme Court ruled this February that Trump had lacked the legal authority to impose the tariffs by declaring an economic emergency, causing the administration to find alternative ways to raise import taxes based on a series of legal authorities.

With midterm elections looming in November, the decision adds a volatile new dimension to Trump’s economic agenda, testing both market resilience and the durability of U.S. Canada relations.