Trump administration hits Canada with 50% tariff over alleged trade 'discrimination'

The Trump administration on Monday announced it will impose a 50% tariff on certain Canadian imports, citing what officials called trade "discrimination" against American businesses. The duties will take effect Aug. 19 under the Tariff Act of 1930 and target a range of Canadian goods, including certain food products, wearables, synthetic materials and industrial goods.

Officials said Canada’s current trade policies unfairly target three U.S. sectors — vehicle, dairy and alcohol exports — contributing to a significant decline in American sales while giving foreign competitors an advantage. "I find that it is necessary and appropriate and in the public interest to impose an additional ad valorem duty of 50 percent on certain products of Canada," a presidential proclamation said.

The U.S. will levy a 50% tariff on certain Canadian imports beginning Aug. 19. "The United States, U.S. businesses and workers, and U.S. commerce suffer from Canada’s discriminatory, unequal, and unreasonable tariff scheme."

Canadian Prime Minister Mark Carney condemned the move, calling it a "direct violation" of the Canada-United States-Mexico Agreement (CUSMA), the free trade pact among the three countries. Carney said Canada is prepared to intensify discussions with the U.S. in the coming weeks to resolve the dispute. "Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens," the prime minister said. "In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families."

A senior administration official told FOX Business correspondent Edward Lawrence that the tariffs are not intended to spark a trade war, but to counter what the White House views as discriminatory Canadian trade measures. "This is not a trade war with Canada. These are defensive measures by the United States taken to remedy discriminatory actions by Canada," the official said. "By doing this, President Trump is leveling the playing field for crucial American exports motor vehicles, alcohol and dairy."

The administration framed the move as an effort to restore fair competition, protect U.S. manufacturers and workers, and pressure Canada to remove what it called restrictive surtaxes. Among various products, the tariffs will apply to certain alcohol, paper and wood products, sports equipment, milk products, sugars, agricultural goods, chemicals, paints, cosmetics, synthetic materials, leather goods, clothing, footwear and electronics.

Senior administration officials told FOX Business that products such as wine, hockey sticks and cement will be affected, while energy, potash, fish and critical minerals will be exempt.

The Trump administration announced a 50% tariff on selected Canadian goods starting Aug. 19, arguing Canada’s trade policies unfairly hurt U.S. auto, dairy and alcohol exporters. The tariffs will cover products including wine, clothing, wood, chemica

According to the presidential proclamations, Canada has maintained a 25% tariff scheme since April 9, 2025, targeting American-made motor vehicles and parts. The administration also accused Canada of using a quota system that limits the number of U.S.-made vehicles allowed into the country tariff-free. Officials said the system further penalizes companies that move manufacturing jobs out of Canada and back to the U.S., effectively pressuring American companies to keep production north of the border.