Trump imposes 50% tariff on Canadian goods, reviving trade-war fears

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US President Donald Trump has imposed a 50 percent tariff on Canadian goods, accusing Canada of “discriminatory treatment” of US cars, dairy products and alcohol.

The new tariff covers consumer goods such as wine and hockey sticks and industrial goods such as cement. But several of Canada’s main exports — energy, potash, critical minerals and fish — have been kept out of its scope.

Canadian Prime Minister Mark Carney said Canada is ready to intensify trade talks with the United States in the coming weeks.

The White House said the new tariff would take effect within 30 days. Relations between the two countries are already poor, with Canada a prime target of the US trade war, and the new tariff is feared to raise tensions further between the two North American neighbors.

Whether the goods fall under the United States-Mexico-Canada free-trade agreement (USMCA) was not considered when imposing the tariff — meaning it must be paid whether or not the goods are covered.

In a statement on the social-media platform X, Carney said: “This is the latest example of the unilateral steps the United States is taking in direct violation of the USMCA.”

Carney also referred to a “threat” to Canada’s sovereignty. Analysts say he was likely responding to Trump’s earlier remarks about Canada becoming the 51st US state.

Tit-for-tat tariffs already in place

Various trade restrictions existed between the two countries before Monday’s announced tariff. The United States currently imposes tariffs of 15 to 50 percent on Canadian steel, aluminum and copper, and collects 35 percent on softwood and 25 percent on car parts made outside the United States.

In response, Canada has imposed 25 percent retaliatory tariffs on steel, aluminum and vehicles imported from the United States.

Not wildfire smoke, but an old dispute

Smoke from recent wildfires in Canada spread to several US cities, and Trump had also threatened tariffs over that. But the executive order he signed Monday makes no mention of wildfires; instead it cites a long-running trade dispute over cars, dairy products and alcohol, signaling that ongoing trade talks may collapse.

On cars, Trump alleges that Canada taxes US cars and parts falling outside the USMCA. He calls it unreasonable and discriminatory, since other countries do not face the same taxes. There is close coordination among the United States, Canada and Mexico in North American car production, but US Commerce Secretary Howard Lutnick had earlier said US interests in the sector should take priority over Canada’s.

Long-standing friction over dairy and drinks

The dispute over dairy is not new. Under Canada’s supply-management system, imports of foreign dairy must stay within set limits; beyond those, tariffs of more than 300 percent apply.

Meanwhile, most Canadian provinces have effectively boycotted US alcohol since last year — one of Washington’s many grievances. Canadian provincial leaders have repeatedly said they would lift the boycott if the United States removed tariffs on key sectors such as metals and automobiles.

Talks under way

Canadian trade representatives are trying to reach a settlement, aiming to reduce existing US tariffs at least somewhat. The BBC has contacted the White House and the Canadian government for comment.

Earlier this year, the United States decided not to renew the USMCA in its existing form. Canada and Mexico favor renewal, but the Trump administration wants changes. The agreement was struck during Trump’s first term. Under current rules, North American trade will run under the deal for the next decade, though its effectiveness will be reviewed each year.

Recourse to a new law

In February, the US Supreme Court struck down Trump’s international tariffs, ruling that the president had exceeded his limits by imposing them under a law meant for national emergencies. The White House then said it would turn to another law to impose import tariffs.

Monday’s new tariff was issued under Section 338 of the Tariff Act of 1930, which applies to discriminatory treatment in trade rather than national emergencies.

বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report

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