Donald Trump threatens to hit Canada with 50% tariff

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinancial TimesNewsEconomyDonald Trump threatens to hit Canada with 50% tariffWashington accused Canada of engaging in unfair trade practices in a move that could reignite the trade warAuthor of the article:Last updated 56 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.U.S. President Donald Trump speaks to reporters after landing in Air Force One on July 19, 2026 in Joint Base Andrews, Maryland. Photo by Andrew Harnik/Getty Images filesDonald Trump has said the United States will hit Canada with tariffs of 50 per cent in a move that could reignite a North American trade war.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSenior administration officials accused Canada of engaging in unfair trade practices, saying its provinces had halted the purchase of U.S. alcohol, slapped tariffs on U.S. cars and discriminated against American cheese.“At the outset of the president’s trade policy, which he implemented earlier last year, there were only two countries that retaliated against the United States: the People’s Republic of China and Canada,” said a senior administration official.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againTrump’s move on Monday risks re-inflaming a global trade skirmish that had eased after the U.S. Supreme Court earlier this year knocked down the president’s blanket global emergency tariffs. Canada is the U.S.’s second-biggest trading partner, with trade between the two amounting to US$716 billion last year.The tariffs will take effect in 30 days and will contain exemptions for energy, potash, critical minerals, fish and other products. Goods that are already subject to U.S. national security tariffs, which include steel and aluminium, will also be exempt from the new duties.Goods that comply with the terms of Trump’s 2020 Canada-United-States-Mexico-Agreement will not be exempt from the higher levies, despite previously being offered carve-outs from the president’s so-called reciprocal tariffs.The absence of this carve-out means a large number of Canadian goods that are currently crossing the border free of duties will be hit with substantial tariffs.On Monday evening the administration published a list of specific goods that would be subject to the 50 per cent tariff, including milk and dairy products, alcoholic drinks, clothing and furniture.Canada’s currency fell to session lows following the announcement, leaving it down about 0.4 per cent at $1.41 to the U.S. dollar.The new higher levies will be imposed on goods that come into the U.S., including those which comply with Trump’s 2020 Canada-United-States-Mexico-Agreement trade deal.The Trump administration will base the tariffs on Section 338 of the Tariff Act of 1930, which has never been used to impose duties on trading partners.A senior administration official said the law gave the president the authority to impose duties when a country discriminated against the U.S. “relative to the treatment it gives a third country.”On Friday, Trump threatened to impose tariffs on Canada over its failure to manage wildfires that had sent toxic smoke billowing into the U.S. U.S. officials on Monday said the tariffs being issued against Canada were separate from the duties being threatened over fires. “The president has asked for options on that, and options are being shared with him,” an official said. “These tariffs are in response to discriminatory treatment by Canada against U.S. products.”© 2026 The Financial Times LtdThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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