Trump administration imposes 50% tariffs on Canadian goods over 'continued discrimination'

The Trump administration has introduced 50% tariffs on more goods from Canada, with an official claiming the measures are in response to the country's "continued discrimination".

Under three proclamations signed by Donald Trump on Monday, the levies apply to imports of Canadian motor vehicles, dairy and alcohol.

The tariffs exclude energy products, potash, fish and critical minerals but do include goods previously protected from import taxes by the 2020 United States-Mexico-Canada (USMCA) trade agreement.

Prime Minister Mark Carney said it was Canada's "right" to match any tariff measures imposed by the US and said his country had shown it was willing to take "the necessary actions to support our economy, defend our workers, farmers, businesses and families".

But he said he was "ready to intensify" talks to resolve the dispute with Washington and "modernise" the USMCA.

Mr Trump's latest tariffs are due to come into effect within 30 days, meaning 19 August, and threaten to revive a trade war with Canada sparked during the president's "Liberation Day" spree of tariffs last April.

A senior Trump administration official told Sky's US partner network NBC News that "Canada has to be held accountable for this continued discrimination" against American goods.

They also said that "the president has asked for options on" tariffs in retaliation for recent Canadian wildfires that affected the US, "and options are being shared with him".

NBC: US using new way to apply tariffs

The official claimed to NBC News that Canada was one of only a few countries other than China that imposed tariffs in response to Mr Trump's "Liberation Day" levies.

They also said that the Trump administration used a tariff law that had never been used to apply the levies before: Section 338 of the Tariff Act of 1930.

"It gives the president this authority in situations where a country discriminates against the United States relative to the treatment it gives a third country, and so in situations of retaliation like this, it fits squarely within what the statute permits and allows," they said.

"So, although it hasn't been used, we feel confident that it fits the fact pattern."

More than 75% of Canada's exports go to the US – with C$3.6bn (£1.9bn) of Canadian goods crossing the border daily.

Doug Ford, premier of Ontario in Canada, said on X: "If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar."

Candace Laing, CEO of the Canadian Chamber of Commerce, said the move was "regrettable" but insisted that the 30-day window before the tariffs start be used "to make meaningful progress in advancing formal talks".

The levies could also face legal challenges: As of last Tuesday, the US has returned $81bn in tariff refunds this fiscal year – which began in October 2025 – after the US Supreme Court struck down Mr Trump's broadest global tariffs as illegal in February.

Mr Trump responded in February by announcing a new global 10% import duty that would apply to all countries.

What's going on with Trump and Canada?

Since winning the 2024 election and starting his second term in the White House, Mr Trump has taken an aggressive posture against the neighbouring country, with him regularly threatening Canada economically and often floating the idea of it becoming "the 51st state".

Read more: Trump's threat most serious since War of 1812

Ahead of the worldwide "Liberation Day" levies, Mr Trump said in February last year that goods from Mexico and Canada would face 25% tariffs, while Canadian energy would be taxed at 10%.

Former prime minister Justin Trudeau, in turn, said Canada would impose 25% tariffs on $155bn Canadian dollars (£85.9bn) of US goods in response to Mr Trump, which has been upheld by Mr Carney.

During negotiations about trade last October, Mr Trump suddenly cancelled all talks in retaliation against a TV advert in Ontario, featuring former president Ronald Reagan speaking negatively about tariffs.

The advert was pulled from broadcast, but the US president then raised tariffs on Canada by 10%.

And in February this year, Mr Trump threatened to block the opening of a new bridge connecting the US and Canada worth billions over the trade war – despite endorsing it in his first term in 2017.

(c) Sky News 2026: Trump administration imposes 50% tariffs on Canadian goods over 'continued discrimination'