Donald Trump launches 50% tariff raid on imports from Canada due to 'unequal treatment'
President Donald Trump is set to hit imports from Canada with a 50 per cent tariff, which will apply to a variety of goods, in response to "unwelcome treatment" north of the border.
The US Commander-in-Chief signed an order targeting the Commonwealth country late last night in retaliation for how the Canadian Government taxes dairy, cars, and alcohol.
As it stands, these duties will come into effect on August 19 and represent a significant escalation in trade tensions between the two neighbours.
According to the White House, the tariffs are considered essential for the US economy to protect American business owners.
Among the goods set to be charged are everyday products such as wine and beer, alongside industrial goods like commercial cement.
However, some key exports will not be slapped with the 50 per cent tax, including energy, critical minerals and fish.
Last week, Mr Trump threatened to impose tariffs after smoke from Canadian wildfires crossed over into US airspace.
In a Truth Social statement, he said: "We are holding Canada responsible for the fact that they are not properly maintaining their forests, and brush therein, and the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable."
But it is understood that the administration's decision to launch another tariff raid is in response to past economic actions from Canada.
An administration official, who spoke to reporters anonymously, claimed that President Trump signed three proclamations to issue the tariffs under Section 338 of the 1930 Trade Act.
On cars, Mr Trump has accused Canada of charging a tax on American vehicles and parts that are not covered under the US-Mexico-Canada Agreement (USMCA).
He has branded it "unreasonable" and says Canada has discriminated against the US by not charging other countries a similar fee.
Automotive manufacturing in North America is highly integrated between Canada, the US and Mexico.
But Mr Trump's Commerce Secretary, Howard Lutnick, has previously said he thinks Canada should "come second" to the US.
The President has also named cars in the past as one issue where the two countries' interests compete.
Dairy has long been a problem for the US - specifically Canada's supply management system, which sets limits on foreign imports.
Those that exceed the limit are charged a tariff upwards of 300 per cent.
And on alcohol, an enduring boycott of US drinks by most Canadian provinces has emerged as a flashpoint for the US since it was imposed last year.
Canadian premiers have said the boycott will be lifted if the US removes its tariffs on Canada's metals and automobiles - but until then, it will stay.