Trump Triggers 50% Tariff War with Canada

U.S. President Donald Trump announced a sweeping 50% tariff on a multitude of Canadian goods, citing “unequal treatment” of American cars, dairy and alcohol.

U.S. President Donald Trump and Canadian Prime Minister during G7 summit

The duties, effective 19 August, add to a smacking list of existing tariffs—15‑50 % on Canadian steel, aluminum and copper, 35 % on soft‑wood lumber, 25 % on parts not made in the U.S.—and sharply raise the stakes for North American trade.

While energy, potash, critical minerals and fish remain exempt, everyday items like wine, bilingual hockey sticks and commercial cement will carry the hefty extra tax.

This last‑minute blow comes after Trump hinted at tariffs over Canadian wildfire smoke, though the orders focus on trade disputes, signalling a breakdown in negotiations and a new chapter of economic frictions.

Canadian negotiators are now scrambling to secure a deal that eases current tariffs on critical sectors, but with Washington’s 50 % blow, the conversation is heading north—potentially back to the negotiating table.