Trump orders new 50% tariff on many Canadian goods

US President Donald Trump has signed orders to impose new 50% tariffs on many Canadian goods, claiming "discriminatory treatment" by Canada against American alcohol, automobile and dairy products.

The tariffs take effect in 30 days and cover various items including wine, hockey sticks and cement, said the White House.

Mr Trump, who saw many of his tariffs struck down by the Supreme Court this year, tapped an untested legal provision for the new duties - Section 338 of the Tariff Act of 1930.

The latest duties will not apply to energy, potash and goods already impacted by sector-specific tariffs.

Crucially, however, they will hit products covered under the US-Mexico-Canada free trade agreement (USMCA).

Canadian Prime Minister Mark Carney said in response that Canada stands ready to "intensify" talks with the United States, and has made proposals to resolve disputes and modernise the USMCA.

"This is the latest in a series of unilateral US trade actions that began with the US imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement," he added.

"Canada, as is its right, has merely matched those measures," Mr Carney said.

The announcement also sparked concerns of escalation among some businesses.

While Mr Trump has imposed duties on US trading partners since returning to the presidency last year, the orders often exempted goods entering his country under the USMCA.

His latest actions could further strain ties with the second largest US trade partner, coming just days after he threatened Canada with increased tariffs over wildfire smoke that descended into the United States.

The White House, in announcing the new tariffs, said Canada was one of two countries - along with China - to retaliate against Mr Trump's sweeping duties from 2025.

It also took aim at the fact that most Canadian provinces have halted purchases of US alcohol over Mr Trump's tariffs and repeated calls for annexation of Canada as America's "51st state".

"Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States," charged US Trade Representative Jamieson Greer.

The tariff announcement aims to "hold Canada accountable for its retaliation and discrimination," he added.

Chris Swonger, president of the Distilled Spirits Council of the United States, said the alcohol industry appreciated acknowledgement of Canada's restrictions.

"We had hoped, however, that this issue could be resolved without further escalation," Mr Swonger said.

Steep tariffs could risk further retaliation "at a time when many US hospitality businesses continue to face financial hardships," he said.