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Trump intensifies his trade offensive against Canada with 50% tariffs and new bans

The new tariffs apply to products as diverse as certain types of cheese, animal hides, motorboats, paper products, and steel and aluminum goods.

A cargo ship loaded with containers, California

A cargo ship loaded with containers, CaliforniaAFP.

Carlos Dominguez
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Carlos Dominguez

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The Trump administration has once again ramped up pressure on Canada amid a trade war that is straining relations between the two USMCA partners. As of Tuesday, a new round of 50% tariffs affects more than a hundred Canadian products, while an import ban on alcoholic beverages, certain dairy products, and large-displacement motorcycles is set to take effect on September 29.

50% tariffs on cheese, steel, paper, and boats

The new tariffs apply to products as diverse as certain types of cheese, animal hides, motorboats, paper products, and steel and aluminum goods. The expanded list also includes furniture, mattresses, golf carts, and certain electric lamps, as detailed by the White House.

With this measure, Washington is adding a new layer of pressure on key sectors of the Canadian economy, which were already feeling the impact of previous 50% tariffs imposed in August on goods worth approximately $20 billion. Ottawa responded with countertariffs of up to 50% on nearly 27.6 billion Canadian dollars (about $20 billion) worth of U.S. products, which took effect on September 8.

At the same time, the Trump administration has removed certain products from the tariff list whose price increases could directly impact U.S. consumers. Items such as toilet paper, cement, road salt, certain fishing equipment, and whiskey in containers larger than four liters are exempt from the 50% tariff.

Import bans effective September 29

Beyond tariffs, Washington has announced direct import bans that will take effect at the end of the month. The list includes Canadian alcoholic beverages (wines, liqueurs, vodkas, rums, tequilas, mezcals, and brandies, among others), certain dairy products such as whey and cane molasses, also included are mopeds and motorcycles with engines larger than 800 cubic centimeters.

The alcohol sector, in particular, fears a direct impact on brands and distilleries that depend on sales in the United States, while dairy producers see a key outlet for byproducts such as whey threatened.

USMCA in the eye of the storm

The trade dispute comes as the United States, Canada, and Mexico renegotiate aspects of the North American Trade Agreement (T-MEC), the accord that governs the exchange of goods and services in the region. The collapse of bilateral talks in August and the succession of tariff and restrictive measures have cast doubt on the viability of the current framework and fueled debate over a possible reorientation of Canadian trade policy.

Canadian Prime Minister, Mark Carney, has noted that the failure of the negotiations helped clarify Ottawa's "red lines," but has also opened the door to greater cooperation with other partners, including the European Union. Meanwhile, Trump has taken a tougher stance against Canada—which he has gone so far as to describe as "the worst country to negotiate with"—and has hinted at new measures targeting automobiles and auto parts starting in January.

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