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Trump Administration Imposes 50% Tariffs on $20 Billion in Canadian Imports

The Trump administration announced sweeping 50% duties on approximately $20 billion worth of Canadian goods. The action invokes Section 338 of the Tariff Act of 1930 after accusing Canada of discriminatory trade practices against U.S. automobiles, dairy and alcoholic beverages. The tariffs take effect in 30 days and will apply even to products qualifying for preferential USMCA treatment, marking a significant escalation in cross-border trade policy. Energy products, potash, critical minerals and fish are exempt, along with goods already covered under Section 232 national security tariffs. U.S. Trade Representative Jamieson Greer said Canada continues retaliatory measures against U.S. efforts to rebalance trade. Canadian imports of U.S. alcoholic beverages fell 81% or $582 million, while the administration cited concerns over Canada's dairy quota system favoring European suppliers. The move threatens renewed disruption to the world's largest trading corridor, where Canada ranks as the second-largest U.S. trading partner with $66.1 billion in two-way trade.