Canada Prepares for New 50% US Tariffs

Canada is facing a new round of 50 percent U.S. tariffs this week, which companies say could lead to job losses in some already struggling industries and further complicate broader negotiations over the future of the North American Free Trade Agreement. Last month, U.S. President Donald Trump invoked Section 338 of a U.S. law dating back to the Great Depression era, known as the Tariff Act of 1930, to impose tariffs effective Wednesday on a range of Canadian imports, including wine, furniture, dairy products, cement, clothing, hockey equipment, and other goods.

This provision allows the president to impose punitive tariffs of up to 50 percent on trading partners he deems to be discriminating against U.S. goods.

The move is part of Trump’s hardline approach to trade with Canada since his return to the White House last year. Canada ranks second among U.S. trading partners after Mexico.

According to data from the U.S. Census Bureau, the new tariffs will cover Canadian goods worth approximately $20 billion, equivalent to about 5.2 percent of the United States’ total imports from Canada, which amounted to $383 billion in 2025.