U.S. sets 50% tariffs on Canadian goods

U.S. President Donald Trump has signed proclamations invoking the Tariff Act to impose 50% tariffs on a broad range of Canadian goods. The measures are scheduled to take effect on August 19 unless the United States and Canada reach an agreement before that date. The actions are framed as part of an escalating trade dispute between the two neighbours and mark a significant increase in duties on selected Canadian imports.

Reporting places the value of goods covered by the new 50% tariffs at roughly US$20 billion, representing about 5% of annual U.S. imports from Canada. The size of the targeted trade flow underscores the potential impact on cross‑border commerce if the measures are implemented as planned.

The tariff proclamations apply to a wide array of Canadian exports but also include notable exclusions. Several categories are carved out from the 50% duties, including energy products, potash and other major fertilizer inputs, critical minerals and fish. Goods that are already subject to national‑security tariffs are also excluded from the new measures.

These exemptions mean that some of Canada’s largest export categories, particularly in energy and key raw materials, are not directly affected by the announced 50% rate. However, many other products shipped from Canada to the United States would face sharply higher costs if the tariffs come into force.

Canadian Prime Minister Mark Carney said he had spoken with President Trump following the tariff announcement. Both leaders agreed to intensify trade talks in an effort to calm rising tensions and seek a resolution ahead of the August 19 implementation date.

Carney stated that Ottawa would not rule out retaliatory measures if no agreement is reached by the deadline. He emphasized that all options remain on the table for Canada’s response should the planned tariffs proceed.

The prospect of new U.S. tariffs has triggered a range of reactions among Canadian provincial premiers. Some leaders have called for strong countermeasures, including the possibility of restricting exports of potash, important minerals and energy products such as oil and electricity.

Others have urged caution in using energy as a bargaining tool. Alberta premier Danielle Smith has said she would not use oil as leverage in the dispute, highlighting divisions among provinces over how aggressively Canada should respond.

On the final day of a premiers’ council meeting, Carney reiterated that Canada would not rule out retaliation if no agreement is in place by August 19. As federal and provincial governments weigh their options, businesses and markets face uncertainty over the scale and duration of any disruption to Canada–U.S. trade.