US President Donald Trump has signed new orders to impose 50% tariffs on a wide range of Canadian goods. The White House said the move responds to what it called Canada's "discriminatory treatment" of American products. The new tariffs will take effect in 30 days. They will apply to several Canadian exports, including wine, hockey sticks and cement.

Trump introduced the new duties through Section 338 of the Tariff Act of 1930. This marks the first time a US president has used this legal provision to impose tariffs. The decision comes after the US Supreme Court struck down several of Trump's earlier tariffs this year. The administration has now turned to a different legal route to continue its trade policy.

The new tariffs will not apply to energy products, potash or goods that already face sector-specific tariffs. However, they will cover products traded under the United States-Mexico-Canada Agreement (USMCA). This is a major shift, as earlier tariff measures usually exempted goods covered by the trade agreement.

Canadian Prime Minister Mark Carney responded by saying that Canada remains ready to continue discussions with the United States. He said Ottawa has already offered proposals to settle trade disputes and update the USMCA.

"This is the latest in a series of unilateral US trade actions that began with the US imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement," Carney said.

"Canada, as is its right, has merely matched those measures," he added.

Trump's latest move could increase pressure on trade ties between the two countries. Canada is the second-largest trading partner of the United States. The announcement came only days after Trump warned Canada of higher tariffs over wildfire smoke that drifted into parts of the United States.

The White House said Canada is one of only two countries, along with China, that responded to Trump's tariff measures with retaliatory actions since 2025. It also criticised Canadian provinces for removing US alcohol products from store shelves. The administration repeated its criticism of Canada's trade policies and referred again to Trump's earlier remarks about making Canada America's "51st state."

US Trade Representative Jamieson Greer said Canada has taken several actions that unfairly affect American businesses.

"Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States," Greer charged.

He added that the latest tariff decision aims to "hold Canada accountable for its retaliation and discrimination."

Trade experts say the legal basis for the new tariffs may face challenges. Scott Lincicome, a trade expert at the libertarian Cato Institute, said this is the first time Section 338 has been used to impose tariffs.

He said many experts believe newer trade laws have effectively replaced this provision. Lincicome argued that Trump has "demonstrated a willingness to use and abuse any statute on the books."

Ryan Majerus, a former US trade official and now a partner at King & Spalding, also questioned the legal strength of the move. He said the law is "subject to a lot of litigation risk" and has never been tested in court.

Majerus believes the latest tariff order is part of a broader negotiating strategy.

"This is clearly designed to get some leverage over Canada," he said.

He noted that negotiations to modernise the USMCA are already underway. He added that trade discussions between the United States and Mexico have moved faster than those with Canada.

"This could be an effort to try to get them going," he said, pointing to the delay before the tariffs take effect.

Majerus also warned that removing USMCA exemptions could have major consequences if the tariffs come into force as planned. Products that previously entered the United States without these duties may now face higher costs. This could affect businesses on both sides of the border.

The tariff announcement has also raised concerns among industry groups. Some business leaders welcomed the US administration's recognition of Canada's restrictions on American products. At the same time, they warned that another round of tariffs could deepen trade tensions.

"We had hoped, however, that this issue could be resolved without further escalation," Swonger said.

He also warned that steep tariffs could trigger further retaliation. Such action could create fresh challenges for many US hospitality businesses that continue to face financial difficulties.

Lincicome also questioned the White House's argument on Canada's dairy policies. He said Washington's claims of discrimination over dairy products could appear "dubious." He noted that Canada's dairy arrangements are linked to its existing trade agreement with the European Union.

He also cautioned that legal challenges may take time even if courts eventually reject the tariffs.

"It's not a guarantee that a court will strike this down and even if they do, it'll take a little while," he said. "In the meantime, there's just a massive amount of uncertainty."

The latest tariff decision has added fresh uncertainty to trade relations between the United States and Canada. While both governments continue talks on updating the USMCA, the new duties could create more friction before negotiations reach a conclusion. Businesses, exporters and trade experts are now watching closely to see whether the tariffs take effect or face legal challenges before their implementation date.