Trump imposes 50% tariff on majority of Canadian imports

President Donald Trump signed an executive order imposing a 50% tariff on most Canadian imports, set to take effect in 30 days. The administration cited discrimination against U.S. automobiles, alcohol, and dairy products as justification. Source: Clarin The move could spark economic chaos and higher inflation, straining bilateral relations. Source: Milenio

The measure

The tariffs were enacted under Section 338 of the Trade Act of 1930 via three proclamations. Source: Milenio Democratic legislators had previously proposed repealing this section, warning it could destabilize the economy. Source: Clarin

Exclusions

Energy products, potash, fish, and critical minerals are exempt. Source: Milenio However, goods previously protected by the USMCA (T-MEC) are now included, as that pact recently expired, triggering new negotiations that may extend to 2036. Source: Clarin

Additional tensions

The administration is also exploring further tariffs on Canada due to its wildfires harming U.S. air quality. Source: Clarin Canada and China were among the few nations that retaliated against previous U.S. tariffs, prompting the current action. Source: Milenio