The US-Canada trade war heats up again as Trump imposes a 50% tariff on some Canadian goods

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Canadian and American flags flutter against a blue sky in Maple, Ontario, Canada, on February 6, 2026. (Photo by Creative Touch Imaging Ltd./NurPhoto via Getty Images)

Trade tensions are flaring between the Trump administration and Canada once again.

On Monday, Donald Trump announced a new 50% tariff on some Canadian goods under Section 338 of the Tariff Act of 1930, which empowers the US President to impose additional duties of up to 50% on imports from any foreign country that discriminates against American commerce.

"Specifically, Canada has taken U.S. alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on U.S. vehicle exports to Canada from companies reshoring to the United States," Ambassador Jamieson Greer said in a statement on Monday.

The tariffs will not apply to energy, potash, fish, critical minerals, or products already covered by separate sector-specific duties, including autos and metals. Goods qualifying under the US-Mexico-Canada Agreement also will not receive exemptions.

The announcement comes as relations between the two countries continue to deteriorate. Earlier this month, the US declined to renew the USMCA, setting the stage for years of fresh trade negotiations.

Last week, Trump also threatened additional tariffs over wildfire smoke drifting into the US, accusing Canada of "willful negligence" in forest management.

Ontario Premier Doug Ford dismissed the claim Monday, calling it "rubbish" and urging the US to help Canada fight the fires instead.

"Why don't you send up some water bombers? Why don't you start helping us, like we would help you in a heartbeat?" Ford said at a news conference in Toronto.

"I'll never stop fighting to protect Ontario," Ford added on X on Monday. "If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar."