Washington, Jul 21 (AP) US President Donald Trump on Monday imposed 50 per cent tariffs on most Canadian goods, declaring that Canada has unfairly discriminated against American autos, 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 only 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 50 per cent tariffs would exclude energy products, potash, fish and critical minerals, but they would include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That 2020 trade pact was not renewed by the US, triggering a new set of negotiations that could run until 2036.

The White House said in a fact sheet that the tariffs would go into effect in 30 days and cover “products ranging from wine to hockey sticks to cement.” The official said that Trump had also requested that his aides look into additional tariffs on Canada because its wildfires hurt air quality in the US.

At the World Cup final on Sunday, Trump watched the game with Canadian Prime Minister Mark Carney, who has openly challenged the US president and has sought to expand Canada's trade relations with other nations. The Trump administration official said their time together at the game was not a working visit to discuss trade and tariffs.

Trump claims in the proclamations that Canada discriminates against American autos, alcohol and cheese relative to other nations, but his argument rests in large part on retaliatory actions taken by Canada after the US president imposed tariffs on Canada under the pretext that it should do more to stop fentanyl smuggling.

Trump noted in his autos proclamation that Canada maintained, starting in April 2025, a 25 per cent tariff on the imports of US motor vehicles that did not qualify for preferential treatment under the USMCA.

The White House said regarding alcohol that all but two Canadian provinces and territories halted the purchase and retailing of American alcoholic beverages beginning last year, which was also a response to Trump's tariffs and taunts of making Canada the 51st state.

But Trump has long objected to Canada's treatment of US cheese, saying in his proclamation that Canada discriminates against the US compared to Europe on dairy products.

Trump and Carney have had a frosty relationship, with Carney, a former central banker, winning the premiership last year by promising to stand up for Canada.

At the World Economic Forum in Davos, Switzerland in January, Carney called out Trump — without naming him — by saying that the “most powerful” countries are using the economy to coerce less powerful nations.

Trump responded at the time by saying: “Canada lives because of the United States." (AP) MNK MNK

Trade tariffs on Canadian goods target alleged discrimination against American automobiles, alcohol and dairy products under trade law. United States trade action imposes tariffs on most Canadian goods, citing alleged discriminatory treatment of American automobiles, alcoholic beverages and dairy products. The measures apply to goods previously protected under the United States-Mexico-Canada Agreement, subject to exclusions for energy products, potash, fish and critical minerals. The stated grounds include Canadian retaliatory tariffs, restrictions on American alcohol sales, treatment of dairy imports, and tariffs on certain United States motor vehicles outside preferential trade treatment.