U.S. President Donald Trump announced a 50% tariff on a broad range of Canadian imports on Monday, citing alleged trade discrimination against American-made cars, alcohol and dairy products.
The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump's return to the White House.
The administration official previewing the action said that Canada was one of the few nations, other than China, that retaliated against Trump's previous tariffs and must be held accountable.
The official insisted on anonymity on a call with reporters to preview the president's actions and said that Trump signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act. Several Democratic lawmakers last year proposed repealing the section because they said Trump could use it to destabilize the economy.
The U.S. Trade Representative's office said that the tariffs would apply to nearly $20 billion of imports from Canada. That's about 5.2% of the $382 billion worth of goods that the U.S. imported from Canada in 2025, according to U.S. Census Bureau data.
