U.S. President Donald Trump has introduced a 50% tariff on a broad range of goods imported from Canada, citing what he described as ‘unequal treatment’ of U.S. automotive, dairy, and alcohol products. The tariffs, announced on Monday and set to take effect after 30 days, will apply to various Canadian imports, including wine, hockey sticks, and cement, according to a White House fact sheet.
The administration characterized the tariffs as a response to Canada’s longstanding trade barriers, marking one of the steepest duties since the Supreme Court struck down Trump’s broader measures earlier this year.
The new duties will cover a range of Canadian imports, including dairy products, swimming pools, furniture, fishing equipment, seeds, apparel, and wigs. However, several major exports, such as energy, potash, critical minerals, and fish, will be excluded.

According to the Office of the U.S. Trade Representative, the tariffs will affect nearly $20 billion worth of Canadian imports, representing about 5.2% of the $382 billion in goods the U.S. imported from Canada in 2025.
Trump has also pointed to the U.S. trade deficit with Canada as a justification for the tariffs. Washington data shows that the U.S. recorded a $46.4 billion goods trade deficit with Canada in 2025, with Canadian oil and gas exports accounting for the largest share of that imbalance.

Trump is invoking a 1930 trade law that allows the president to impose tariffs of up to 50% in cases where another country is deemed to discriminate against U.S. goods. However, as the law has not previously been used to introduce tariffs, the measure could face legal challenges.
The latest tariff also represents a departure from the previous framework under which goods meeting the requirements of the United States-Mexico-Canada Agreement (USMCA) were largely exempt from additional tariffs.
AUTOMOTIVE WORLD | India Invites Applications for Vehicle Import Quotas Under CETA

