WASHINGTON (TNND) — President Donald Trump imposed 50% tariffs on most Canadian goods on Monday, declaring the country has unfairly discriminated against American auto, alcohol and dairy products.
Trump’s move could trigger a new wave of economic chaos, with risks of higher inflation and a more strained relationship between the U.S. and Canada, which have always been close. According to the AP, an administration official said that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs, which was grounds for holding Canada accountable.
The new 50% tariffs would exclude energy products, potash, fish and critical minerals. However, they would include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement (USMCA) in 2020.
That trade pact was not renewed by the U.S., triggering a new round of negotiations that could run until 2036.
The White House said in a fact sheet that the tariffs would go into effect in 30 days and cover “products ranging from wine to hockey sticks to cement.”