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Trump's New Canada Tariffs Raise Trade War Fears

The tariffs, which will take effect in 30 days, cover about $20 billion worth of Canadian goods, including electrical equipment and machinery

US President Donald Trump and Canadian Prime Minister Mark Carney (Pic via X)

President Donald Trump has announced new 50% tariffs on selected Canadian imports, raising the prospect of a renewed trade dispute between the two countries, according to CNN.

The tariffs, which will take effect in 30 days, cover about $20 billion worth of Canadian goods, including electrical equipment and machinery. The White House said the measures are unrelated to previous disputes over wildfire smoke.

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Canadian Prime Minister Mark Carney reaffirmed his support for free and fair trade, while Ontario Premier Doug Ford called for Canada to respond with matching tariffs if the U.S. proceeds with the plan.

According to the report, the administration invoked Section 338 of the Tariff Act of 1930, a provision that has never previously been used in this manner. Key imports such as energy products, critical minerals and certain goods already subject to industry tariffs are exempt.

The report said industry groups warned the new duties could disrupt North America's integrated supply chains and increase costs for businesses and consumers on both sides of the border.

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