U.S. Imposes 50% Tariffs on Select Canadian Goods Amid Ongoing Negotiations
A 50% tariff on certain Canadian imports is slated to begin at midnight, pending the outcome of intensive talks between the United States and Canada.
A new round of tariffs covering a range of Canadian products is scheduled to take effect at midnight, unless recent negotiations between President Donald Trump and Canadian Prime Minister Mark Carney produce an agreement to suspend the duties. The tariffs, announced last month, target about 5% of the goods the United States imported from Canada last year and focus on sectors such as automobiles, alcohol and dairy, which the U.S. alleges involve discriminatory trade practices.
Canadian Prime Minister Mark Carney told reporters the discussions were "very intense and delicate," while Trade Minister Dominic LeBlanc said the work was not yet finished. U.S. Trade Representative Katherine Tai (identified in the source as Jamieson Greer) described the talks as constructive but noted many issues remain, adding that Canada appears to be seeking a more conciliatory approach.
Negotiators are reportedly considering a trade-off that could see the United States reduce duties on Canadian metals, lumber and auto components in exchange for greater Canadian market access for U.S. goods, including dairy, and a rollback of retaliatory tariffs. The dialogue has been described as tense, with the U.S. side likening Canada's retaliation to actions typically associated with China.
If implemented, the tariffs would be levied under Section 338 of the Tariff Act of 1930, which permits duties up to 50%. Neil Herrington, senior vice president of the Canadian Chamber of Commerce, warned that higher tariffs could harm both economies, increase costs for U.S. families, disrupt supply chains and threaten millions of jobs tied to the U.S.-Mexico-Canada Trade Agreement.