Trump's new 50% tariff to hit Canadian goods

U.S. President Donald Trump has signed an executive order imposing a 50% tariff on various Canadian exports, escalating the trade conflict between the two countries. This tariff addresses Canada's responses to U.S. trade policies and its treatment of U.S. motor vehicles, dairy, and alcohol.

The new rate will take effect in 30 days and affects many products except for energy, potash, critical minerals, and fish. The 50% tariff is significantly higher than current duties and is backed by Section 338 of the U.S. Tariff Act.

The tariffs could face legal challenges but are framed as necessary defensive measures against Canada's discrimination against U.S. trade.