US 50% tariffs on nearly $20 billion Canadian goods to start Wednesday as talks stall
This digest was compiled by AI from multiple sources — links to the originals are below.
President Donald Trump invoked Section 338 of the Tariff Act of 1930 to impose 50% duties on Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. The tariffs will take effect Wednesday and will cover nearly $20 billion of Canadian goods, about 5.2% of the $383 billion the United States imported from Canada in 2025. Canadian Trade Minister Dominic LeBlanc and chief negotiator Janice Charette are in Washington this weekend, but Ottawa and Washington remain far from a draft trade deal, a source briefed on talks said Friday.
Key Facts
- The new 50% tariffs will take effect Wednesday and cover nearly $20 billion of Canadian goods, about 5.2% of the $383 billion the United States imported from Canada in 2025.
- President Donald Trump invoked Section 338 of the Tariff Act of 1930, which allows punitive tariffs of up to 50% against trading partners deemed to discriminate against US goods.
- Canadian Trade Minister Dominic LeBlanc and chief negotiator Janice Charette stayed in Washington over the weekend, and Canada and the United States remain far from a draft trade deal.
- The duties will apply even to products that qualify for preferential treatment under the US-Mexico-Canada Agreement, unlike many earlier Trump-era tariffs.
Section 338 Tariffs
President Donald Trump last month invoked Section 338 of the Tariff Act of 1930 to impose 50% duties on Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. The provision permits the U.S. president to impose punitive tariffs of up to 50% against trading partners deemed to have discriminated against U.S. goods. The tariffs will cover nearly $20 billion of Canadian goods, amounting to about 5.2% of the $383 billion the United States imported from Canada in 2025. Unlike many of Trump's earlier tariffs, the new duties will apply even to products that qualify for preferential treatment under the U.S.-Mexico-Canada Agreement.
Trade Negotiations
Canada's minister responsible for U.S. trade relations, Dominic LeBlanc, and chief trade negotiator Janice Charette have stepped up talks with their U.S. counterparts ahead of Wednesday's deadline. LeBlanc told an advisory committee on Friday that Canada and the United States remain far from a draft trade deal despite regular meetings, according to a source briefed on the matter. LeBlanc and Charette stayed in Washington over the weekend to continue negotiations. Last month Trump refused to extend the USMCA agreement for another 16 years, subjecting the pact to annual reviews and prolonging the trade uncertainty that has sapped investments and job growth in Canada.
Sector Exposure
Businesses in Canada's wood product sector and wine industry, already affected by wildfires in the west, said the 50% tariffs will cause job losses and lower growth. Alain Ouzilleau, owner of custom kitchen cabinet brand Cabico Ltd, said the tariffs will bring severe consequences for the industry. The new duties will apply to goods such as cement, clothing, fishing rods and hockey equipment, alongside wine, furniture and dairy products.
3 sources
US 50% tariffs on nearly $20 billion Canadian goods to start Wednesday as talks stall
