The Trump administration has imposed a 50% tariff on Canadian imports, marking a major escalation in trade tensions between the two neighbors. Canadian Prime Minister Mark Carney responded by pledging to “intensify” trade talks, setting the stage for a high-stakes negotiation as a critical July 24 deadline looms.
The new duties come as Washington races to replace a temporary 10% import surcharge set to expire at midnight on July 24. That surcharge, imposed under Section 122 of the Trade Act of 1974, was designed as a 150-day stopgap after the U.S. Supreme Court struck down the administration’s use of emergency powers for broad tariffs in February 2026. The proposed replacement is a 10% duty under Section 301, formally tied to forced-labour enforcement, though CUSMA-compliant goods and products already covered by Section 232 tariffs would be exempt.
The 50% rate itself is not new for key industrial metals. Since April 6, 2026, Section 232 tariffs on aluminum, steel, and most copper articles have been set at 50% of full customs value, with a 25% rate on certain derivatives. Canada’s steel exports to the U.S. have already fallen by half, and lumber exports were roughly 20% below 2024 averages by February 2026. The Bank of Canada estimates the average U.S. tariff on Canadian goods now stands at 5.0%, while Canada’s average retaliatory tariff on U.S. imports is 1.5%.