New US duties target Canadian exports including wine, hockey sticks and industrial products, escalating tensions between neighbours
US President Donald Trump has imposed 50% tariffs on a wide range of Canadian imports, triggering a fresh escalation in trade tensions between the United States and Canada.
The new tariffs, which will take effect in 30 days, target several Canadian goods including consumer products such as wine and hockey sticks, as well as industrial goods like cement.
However, some major Canadian exports, including energy, potash, critical minerals and fish, have been excluded from the measures.
Carney vows to continue negotiations
Canadian Prime Minister Mark Carney responded to the announcement by saying his government was prepared to “intensify” trade discussions with Washington in the coming weeks.
Carney criticised the decision, describing it as another unilateral trade action by the US and accusing Washington of violating the terms of the existing US-Mexico-Canada Agreement (USMCA).
He also referred to what he called threats to Canadian sovereignty, an apparent reference to Trump’s previous comments about Canada potentially becoming the 51st US state.
Trade dispute deepens
The latest tariffs apply to covered goods even if they fall under protections provided by the USMCA trade agreement.
The move adds to existing trade barriers between the two countries, including US tariffs on Canadian steel, aluminium and copper, as well as duties on Canadian lumber and vehicle parts.
Canada has responded with its own retaliatory tariffs on selected American steel, aluminium and automobile imports.
Disagreements over cars, dairy and alcohol
The White House said the tariffs were introduced in response to what Trump described as unfair treatment of American businesses.
A major point of disagreement involves the automotive industry, where Trump has accused Canada of imposing unfair taxes on US vehicles and parts.
The issue is complicated by the close integration of North American car manufacturing, with supply chains crossing between Canada, the US and Mexico.
The US has also criticised Canada’s dairy system, which limits foreign imports and places high tariffs on products exceeding those limits.
Alcohol trade has become another source of tension after several Canadian provinces introduced a boycott of US alcoholic products last year.
Businesses warn of economic impact
Canadian and US business groups have urged both governments to reach an agreement before the tariffs come into effect.
The Canadian Chamber of Commerce described the decision as disappointing and called for meaningful progress in negotiations.
US alcohol industry representatives also warned that the tariffs could increase the risk of further retaliation and harm businesses on both sides of the border.
Future of US-Canada trade relationship uncertain
The latest dispute comes as both countries prepare for discussions over the future of the USMCA agreement, which was negotiated during Trump’s first term.
While the agreement remains in place, Washington has pushed for changes, while Canada and Mexico have sought to maintain the current framework.
The new tariffs represent one of the biggest challenges facing the economic relationship between the two long-standing allies and could affect businesses, consumers and cross-border trade if no agreement is reached.
