Canada faces 50% US tariffs as trade talks remain far apart

The duties are set to begin Wednesday and cover nearly $20 billion of Canadian goods, including wine, furniture and dairy products

Canada faces a new round of 50% US tariffs beginning Wednesday as negotiators remain far from a trade agreement, raising concerns about job losses and wider North American trade talks.

President Donald Trump invoked Section 338 of the Tariff Act of 1930 to impose duties on Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.

The tariffs would cover nearly $20 billion of Canadian goods, or about 5.2% of the $383 billion in goods the United States imported from Canada in 2025, according to US Census Bureau data.

Canadian Trade Minister Dominic LeBlanc and chief negotiator Janice Charette increased talks with US officials ahead of the deadline. LeBlanc told an advisory committee Friday that the two sides remained far from a draft deal, according to a source briefed on the matter.

The duties would apply even to products eligible for preferential treatment under the US-Mexico-Canada Agreement. Trump last month declined to extend the pact for another 16 years, leaving it subject to annual reviews.

Business representatives warned that a 50% tariff could make some Canadian products uncompetitive in the US market and disrupt small companies dependent on cross-border trade.

US Trade Representative Jamieson Greer has pressed Canada over its dairy system and the removal of US alcohol from stores in several provinces. Trade experts expect both issues to feature prominently in any agreement.

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