President Donald Trump's proposed 50% tariffs on dozens of Canadian goods are on track to be implemented early Saturday morning, following a last-minute extension of a previous deadline. The levies, which target items ranging from dairy products and honey to whiskey and vodka, were initially slated to take effect earlier in the week.
Trump announced earlier this week that the United States had reached a preliminary agreement to resolve a trade dispute with Canada, suggesting this breakthrough had prompted him to delay the tariffs. He stated that as part of the deal, Canadian tariffs on American agricultural goods would be eliminated. "The tariffs will be non-existent for our farmers. Our farmers were paying tremendous tariffs into Canada. And those tariffs are going to be totally eviscerated down to zero," Trump said.
However, a statement from Canadian Prime Minister Mark Carney's office appeared to moderate Trump's assertion, noting "substantial progress" but emphasizing that significant work remained to be done. Carney stated that Canada's representatives were focused on achieving an agreement that would strengthen its domestic industry.
The U.S. Trade Representative's office indicated that a final deal would likely include comprehensive market access for U.S. goods, economic security commitments, digital trade alignment, and provisions to protect the U.S. market and workers, alongside Canadian partners.
Trump also suggested the potential deal might involve a reconsideration of the Keystone XL Pipeline, which was canceled in 2021. "Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump posted.
The tariffs are being imposed under Section 338 of the Tariff Act of 1930, a provision that allows the president to enact levies of up to 50% on countries found to have discriminated against the U.S. in their trade practices. This provision has not been previously invoked, meaning the action lacks judicial precedent, according to an economist at UBS.
Despite the looming deadline and the specific goods targeted, the tariffs were expected to affect only a fraction of total U.S. imports from Canada, with significant exemptions for key commodities like oil, gas, and potash. Trump has engaged in ongoing trade negotiations with Canada since taking office, seeking to address disputes that began with earlier tariff announcements.
This latest trade development follows Trump's imposition of broader tariffs on approximately 60 trade partners, including the European Union, earlier in the year. These measures were part of a larger effort to implement duties after previous levies were struck down by the Supreme Court.