Trade relations between the United States and Canada have entered a new phase of tension, after US President Donald Trump announced the imposition of 50% tariffs on a wide range of Canadian products.

The White House justified the decision by accusing Canada of "unfair treatment" of American vehicles, dairy products and alcoholic beverages.

The new measures will take effect within 30 days and affect imports worth about $20 billion, or about 5.2% of the goods the US imported from Canada during 2025. The tariffs will apply to a wide range of goods, from cement and construction materials to wine, alcoholic beverages and sporting equipment, including hockey equipment.

However, the US administration has exempted from this measure several sectors considered strategic for the US economy, such as energy, potash, critical minerals and fishery products. According to US authorities, the tariffs will also apply to products covered by the United States-Canada-Mexico Agreement (USMCA).

“Despite our efforts to reach fair and reciprocal trade agreements, Canada continues to take retaliatory measures against the United States,” said U.S. Trade Representative Jamieson Greer. Canadian Prime Minister Mark Carney immediately reacted, calling the decision another unilateral action by Washington.

In a statement published on the X platform, Carney said Canada will intensify negotiations with the US in the coming weeks to reach a lasting solution. He accused the US administration of violating the United States-Canada-Mexico Agreement (USMCA), while also mentioning Donald Trump's previous statements about the possibility of Canada becoming the "51st state" of the US, describing them as a threat to the country's sovereignty.

Disputes that have been going on for years

Trade clashes between the two countries are nothing new. Currently, the US maintains tariffs of 15% to 50% on Canadian steel, aluminum and copper, 35% on lumber and 25% on auto parts not manufactured in North America.

On the other hand, Canada has imposed retaliatory tariffs of 25% on a range of American products.

One of the main issues of contention remains the auto industry. Trump accuses Canada of discriminating against American manufacturers through tariffs on vehicles and parts not covered by the USMCA agreement.

The dairy sector also continues to be a source of tension. Canada's supply management system restricts foreign imports and, in some cases, imposes tariffs of up to 300% on products that exceed quotas. The Trump administration based the decision on Section 338 of the Tariff Act of 1930, which allows for measures against discriminatory trade practices.

The decision comes after the US Supreme Court recently struck down several previous tariffs imposed by the Trump administration, arguing that the president had exceeded his authority.

Meanwhile, businesses on both sides of the border have expressed concern about the economic consequences of the escalating trade conflict. The president of the Canadian Chamber of Commerce, Candace Laing, called for a resumption of dialogue before the tariffs go into effect, while the American Distilled Beverages Council warned that the new measures could trigger a new wave of trade retaliation, with consequences for producers, exporters and consumers in both countries.