U.S. Imposes 50% Tariffs on $20 Billion of Canadian Goods, Canada Plans Retaliation
President Trump announced 50% tariffs on about $20 billion of Canadian imports, prompting Canada to schedule matching duties beginning Sept. 8, with paper products, alcohol and dairy among the affected categories.
President Donald Trump announced on Saturday that the United States will levy 50% tariffs on roughly $20 billion of Canadian imports after negotiations failed on Friday. Canadian Prime Minister Mark Carney said Canada will respond with equivalent "dollar-for-dollar" tariffs starting Sept. 8.
The new duties cover a range of paper products, including parchment paper, paper cups, plates and kraftliner used for cardboard boxes, as well as about three dozen types of plywood. U.S. trade data show these categories accounted for about $1.5 billion of imports from Canada last year.
Alcoholic beverages such as wine, beer, whiskey, vodka and gin are also subject to the tariffs; the United States imported roughly $1.5 billion of these products from Canada in 2023. Canada has previously restricted U.S. alcohol on provincial shelves, a point of contention in the talks.
Dairy items, including milk, cheese, butter and whey, face the new duties as well, with U.S. purchases of Canadian dairy totaling about $780 million last year. Trump has accused Canada of limiting sales of American dairy and other goods.
American companies may choose to halt imports, absorb the tariff costs or seek alternative suppliers, though many rely on Canadian sources for cost or logistical reasons. The tariffs come amid higher energy and transportation costs linked to the conflict in Iran, raising concerns that some expenses could be passed on to consumers.