U.S. to slap 50% tariffs on Canadian goods

The https://www.axios.com/politics-policy/donald-trump" target="_blank">Trump administration said Monday that it will impose an additional 50% tariff on certain Canadian goods — including hockey sticks, wine and cement — accusing Canada of discriminating against U.S. exports.

Why it matters: The move https://www.axios.com/2026/04/29/trump-trade-tariffs-canada" target="_blank">ratchets up tensions in an increasingly bitter trade dispute between two of the world's closest economic partners.

Zoom out: The https://www.axios.com/economy/tariffs" target="_blank">tariffs, which take effect next month, will be imposed under https://www.cov.com/-/media/files/corporate/publications/2016/12/law360_the_presidents_long_forgotten_power_to_raise_tariffs.pdf" target="_blank">Section 338 of the Tariff Act of 1930 — a never-before-used authority.

The duties cover roughly $20 billion in annual Canadian imports.

• A senior administration official said the tariffs were https://www.axios.com/2026/07/16/air-quality-wildfire-smoke-side-effects-risk-safety" target="_blank">not the wildfire tariffs that President Trump had earlier threatened, though the official added that options on that front remain under consideration.

Zoom in: The administration says that Canada is one of only two countries — alongside China — to retaliate against Trump's earlier tariffs, pointing to provinces that pulled U.S. liquor from store shelves.

• Officials also cited auto policies they say favor Canadian production and dairy rules they argue give European cheese an advantage over American imports.

The backdrop: Trump https://www.axios.com/2026/07/17/canada-wildfire-smoke-trump-tariffs" target="_blank">threatened to impose additional Canadian tariffs last week in a https://truthsocial.com/%40realDonaldTrump/116936952365066409" target="_blank">Truth Social post, saying that costs related to the wildfire smoke must be added to the tariffs.

• Trump and Canadian Prime Minister Mark Carney were seen together on Sunday at the World Cup final match in East Rutherford, N.J.
• Trump told reporters the two men talked about potential action in response to the wildfires while noting their "good relationship."

The big picture: This marks another escalation in U.S.-Canada tensions after the Trump administration https://www.axios.com/2026/07/01/trump-trade-canada-mexico" target="_blank">declined to extend the https://www.axios.com/2018/11/30/trump-trudeau-usmca-trade-deal-signing-g20" target="_self">U.S.-Mexico-Canada Agreement, leaving the continent's trade pact in limbo.

• Unlike previous Trump tariffs on Canada, the new duties apply to goods that qualify for duty-free treatment under the USMCA.
• Economists have found that the trade deal has been critical in limiting the tariff impact on consumer prices.
• The exemptions spare some of Canada's most strategically important exports, including potash, critical minerals and most energy products, limiting the potential fallout for U.S. industry.

The other side: In a statementhttps://x.com/MarkJCarney/status/2079353135126941864?s=20" target="_blank"> posted on X, Carney called the tariffs "in direct violation" of the USMCA and pledged to intensify negotiations in the coming weeks.

• The Canadian Chamber of Commerce called the tariffs a "regrettable escalation" and urged both countries to use the month before they take effect to advance negotiations.

The intrigue: This year'shttps://www.axios.com/2026/02/20/trump-tariffs-supreme-court-illegal" target="_blank"> Supreme Court decision limiting Trump's emergency tariff powers forced the administration to search for other https://www.axios.com/2026/03/11/trump-tariffs-trade-301" target="_blank"> legal avenues to impose its trade agenda.

• That includes the administration's temporary 10% global tariffs under Section 122 of the Trade Act — an authority that expires later this week.

Editor's note: This story was updated with additional details.