The Trump administration unveiled plans to impose a 50% tariff on a wide array of Canadian imports, arguing that the measure is necessary to hold Canada accountable for retaliatory trade actions taken against the US.

Officials specifically cited provincial restrictions on US alcoholic beverages, tariffs affecting American vehicles, and dairy-related trade policies.

The tariffs, issued through three presidential proclamations under Section 338 of the Tariff Act of 1930, will come into force after 30 days and affect products ranging from alcohol and food to construction materials, furniture, technology goods, and sports equipment.

Most USMCA-covered goods will not be exempt, though energy products, potash, fish, critical minerals, and certain other items are excluded.

The administration said the new tariffs represent the highest rate allowed under Section 338 and emphasized that while trade discussions with Canada remain active, no formal negotiations are currently taking place.