Daijiworld Media Network - Washington
Washington, Jul 21: US President Donald Trump has announced an additional 50 per cent tariff on a wide range of Canadian imports, accusing Ottawa of unfair trade practices that discriminate against American automobiles, alcoholic beverages and dairy products.
The new duties were introduced through three presidential proclamations issued under Section 338 of the Tariff Act of 1930, with the White House stating that the move is intended to counter Canada's trade policies and create a level playing field for US exporters.
According to the administration, the additional tariffs will come into effect 30 days after the proclamations were signed and will apply even to products that qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
However, the measures will exclude certain categories, including energy products, potash, fish, critical minerals, and goods already covered under existing Section 232 tariffs, among other specified items.
The White House said the tariffs cover hundreds of Canadian products, ranging from consumer goods and cement to wine and hockey equipment.
The administration alleged that Canada has adopted trade policies that disadvantage American exporters while offering more favourable treatment to other countries.
It claimed that Canada imposes tariff and quota restrictions on US-made vehicles that do not apply to imports from several other trading partners. According to the White House, these policies have encouraged manufacturers to expand production in Canada rather than invest in facilities within the United States.
The administration also cited data indicating that Canadian imports of US automobiles declined by about 22 per cent, equivalent to $5.6 billion, between April 2025 and March 2026 compared to the previous year, while vehicle imports from other countries increased.
Washington further accused Canadian provinces of restricting the sale and distribution of American alcoholic beverages. It said that all but two provinces and territories had halted purchases and retail sales of US alcohol while continuing to import products from other countries.
According to the White House, Canadian imports of US alcoholic beverages dropped by nearly 81 per cent, representing a decline of around $582 million during the March 2025-February 2026 period.
The administration also criticised Canada's dairy import policies, arguing that its tariff-rate quota system for cheese under the USMCA is more restrictive for American exporters than the arrangements extended to the European Union under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
The White House maintained that while numerous countries have negotiated trade agreements with the United States over the past 18 months, Canada, along with China, chose to retaliate instead of addressing Washington's concerns.
The latest tariff announcement marks another major step in the Trump administration's "America First" trade strategy, further intensifying economic tensions between the United States and Canada.