US President Donald Trump announces his reciprocal tariff plan at the White House Rose Garden last April. The Supreme Court struck down Trump's reciprocal tariffs in February, after which US Customs and Border Protection opened a portal to accept refund applications for previously paid tariffs. [AP]
US President Donald Trump announces his reciprocal tariff plan at the White House Rose Garden last April. The Supreme Court struck down Trump's reciprocal tariffs in February, after which US Customs and Border Protection opened a portal to accept refund applications for previously paid tariffs. [AP]

President Donald Trump has signed an executive order imposing 50 percent tariffs on Canadian goods, targeting one of the United States' largest trading partners in a move expected to reignite trade tensions across North America.

Trump signed the order Monday, accusing Canada of discriminating against American products, according to The New York Times. The tariffs cover a broad range of Canadian imports.

The administration said the measures take effect in 30 days and apply to products including wine, hockey sticks and cement.

The White House described the tariffs as retaliation for what it called discriminatory policies Canada has imposed on US companies in the automotive, dairy and alcohol industries.

Energy products, potash, certain seafood and minerals, and items already subject to national security tariffs — including steel and auto parts — are exempt from the new measures.

A defining feature of the order is that goods covered by the United States-Mexico-Canada Agreement are not exempt; the tariffs apply to USMCA-eligible products without exception.

Trump negotiated the USMCA during his first term in 2018, and it has since served as the cornerstone of intraregional trade in North America. The US is currently pursuing revisions to the agreement, and analysts say the tariffs are partly designed to pressure Canada back to the negotiating table.

The US is set to hold USMCA revision talks with Mexico this week but has yet to open formal negotiations with Canada.

The tariffs are imposed under Section 338 of the Tariff Act of 1930, which authorizes the president to levy additional duties on imports from countries that discriminate against US commerce. The provision has rarely been invoked, making its application here highly unusual.

The Trump administration has long taken issue with decisions by some Canadian provincial governments to halt purchases of American alcohol, as well as Canada's imposition of retaliatory tariffs in response to earlier US trade measures.

If the order takes effect, it is expected to sharply escalate trade tensions between the two countries and send significant ripple effects through North American supply chains.


sjy@heraldcorp.com