Trump orders 50% tariff on most Canadian goods, citing unfair trade practices

Published Jul 21, 02:37 PM UTC

President Donald Trump signed proclamations imposing 50% tariffs on a wide range of Canadian imports, claiming Canada has unfairly discriminated against U.S. cars, alcohol, and dairy products. The tariffs, set to take effect in 30 days, rely on Section 338 of the Tariff Act of 1930, a never-before-used legal basis. Energy products are exempt, but goods compliant with the USMCA will be taxed. The White House says the tariffs apply to nearly $20 billion of Canadian goods, about 5.2% of last year's imports. Canadian Prime Minister Mark Carney stated Canada 'merely matched' Trump's previous tariffs and is ready for intensive talks. Economists warn the move could unleash economic chaos, higher inflation, and frayed relations, with one calling it 'the nuclear option' that injects massive uncertainty into the global economy.