U.S. to impose new 50% tariff on Canada over alcohol bans, dairy quotas

The U.S. said Monday it will be imposing an additional 50 per cent tariff on Canadian imports due to retaliatory and “discriminatory” measures Canada took in response to U.S. President Donald Trump’s tariffs.

The new tariff will take effect 30 days after Trump signs the executive order and will apply to goods covered by the Canada-U.S.-Mexico Agreement on free trade, a senior administration official told reporters on background.

The official said the move was made in response to provincial and territorial boycotts of American alcohol products, which were enacted last year after Trump began tariffing Canada and Mexico to spur actions to combat fentanyl trafficking.

Canada’s reciprocal tariffs on U.S. vehicles and auto parts, as well as its supply management policies for the dairy industry that limits U.S. imports, were also cited as impetus for the new tariff.

The tariff will be imposed under Section 338 of the U.S. Tariff Act of 1930, which allows a president to tariff goods from any country that “discriminates … against the commerce of the United States,” according to the act.

The official said only energy products, critical minerals, potash and goods already facing Section 232 tariffs like steel, aluminum and autos will be exempt.