US President Donald Trump has imposed tariffs of 50% on a wide range of goods imported from Canada in response to what he called “unequal treatment” of American cars, dairy products and alcohol.
The tariffs take effect within 30 days and represent a major escalation in trade tensions between the North American neighbors.
The White House has said the tariffs are necessary to protect American businesses.
Targeted goods range from items of daily consumption such as wine and hockey sticks to industrial goods such as commercial cement. However, several key exports, such as energy, potassium, essential minerals and fish, will be preserved.
The new duties apply to all covered goods, regardless of whether the product was included in the existing free trade agreement between Canada, the United States and Mexico, known as the USMCA.
Monday’s import taxes build on trade barriers that already exist between the two countries.
The US maintains existing tariffs ranging from 15% to 50% on Canadian steel, aluminum and copper. Washington also levies a 35 percent tariff on Canadian softwood lumber, as well as a 25 percent tax on non-American auto parts.
Canada has its own 25 percent counter-tariff on selected imports of American steel, aluminum and vehicles.
Monday’s duties come after President Trump threatened to impose tariffs on smoke from Canadian wildfires that drifts into US cities.
But the executive order Trump signed Monday made no mention of the wildfires.
Instead, the three proclamations list US trade irritants previously known to Canada related to autos, dairy products and alcohol, signaling a breakdown in trade talks between the two countries.
On autos, Trump accuses Canada of taxing US cars and parts that are not covered by the USMCA.
He claims this is “unreasonable” and that Canada discriminated against the US by not charging other countries a similar tax.
Automotive production in North America is tightly integrated between Canada, the United States, and Mexico.
But Trump’s Commerce Secretary Howard Lutnick has previously said he believes Canada should “come second” to the US.
In the past, Trump has also called autos one of the issues where the two countries’ interests are at odds.
Meanwhile, dairy products have long been a problem for the US, particularly Canada’s supply management system, which places restrictions on foreign imports. For exceeding the limit, a tariff of over 300% is charged.
Finally, the long-running US booze boycott by most Canadian provinces has been a major sore point for Americans since it was introduced last year.
Canadian prime ministers have repeatedly said the boycott would be lifted if the US lifted its tariffs on key Canadian sectors, including steel and autos.
Canadian trade negotiators have been working to hammer out a deal that would reduce at least some of the current U.S. tariffs.
In February, the US Supreme Court struck down sweeping international tariffs imposed by Trump through the International Emergency Economic Powers Act of 1977.
The judges ruled that the president exceeded his authority when he declared the duties under the law, which is intended for national emergencies.
At the time, the White House promised it would use other mechanisms to impose taxes on imports.
Monday’s tariffs were imposed under Section 338 of the Tariff Act of 1930, which deals with trade discrimination, not national emergencies.
Candence Laing, head of the Canadian Chamber of Commerce, called the move a “regrettable decision” but urged officials to make “significant progress” in negotiations before the new tariffs take effect in 30 days.
The BBC has contacted the White House and the Canadian government for comment.