Trump hits Canada with 50% tariffs over autos, alcohol and cheese

The move could unleash a new wave of economic chaos, pushing inflation higher and fraying relations between Washington and one of its closest allies.

President Donald Trump on Monday imposed 50% tariffs on most Canadian goods, declaring that Canada has unfairly discriminated against American autos, alcohol and dairy products.

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The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump’s return to the White House. The administration official previewing the action said that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable.

The official, who insisted on anonymity on a call with reporters to preview the president’s actions, said that Trump signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act. Several Democratic lawmakers last year proposed repealing the section because they said Trump could use it to destabilize the economy.