U.S. to slap 50% tariffs on Canadian goods
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Newsletters Axios Local Show Axios Pro Axios Live The Axios Show Login Axios All topics Axios Search Updated 10 hours ago - Economy U.S. to slap 50% tariffs on Canadian goods, deepening North America trade war Courtenay Brown email (opens in new window) sms (opens in new window) facebook (opens in new window) twitter (opens in new window) linkedin (opens in new window) bluesky (opens in new window) Add Axios on Google Add Axios as your preferred source to
Add Axios on Google President Trump speaks with Canadian Prime Minister Mark Carney at the G7 last month. Photo: Evelyn Hockstein/Pool/AFP via Getty Images
The 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 ratchets up tensions in an increasingly bitter trade dispute between two of the world's closest economic partners.
Zoom out: The tariffs , which take effect next month, will be imposed under Section 338 of the Tariff Act of 1930 — a never-before-used authority. The duties cover roughly $20 billion in annual Canadian imports.
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.
The backdrop: Trump threatened to impose additional Canadian tariffs last week in a Truth Social post , saying that costs related to the wildfire smoke must be added to the tariffs.
The big picture: This marks another escalation in U.S.-Canada tensions after the Trump administration declined to extend the U.S.-Mexico-Canada Agreement , leaving the continent's trade pact in limbo.
The other side: In a statement posted on X , Carney called the tariffs "in direct violation" of the USMCA and pledged to intensify negotiations in the coming weeks.
The intrigue: This year's Supreme Court decision limiting Trump's emergency tariff powers forced the administration to search for other legal avenues to impose its trade agenda.
Editor's note: This story was updated with additional details.
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