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Donald Trump point at Canadian Prime Minster Mark Carneydo

US President Donald Trump and Canadian Prime Minister Mark Carney attend the North Atlantic Council meeting held as part of the 36th NATO Heads of State and Government Summit at the Presidential Complex in Ankara, Türkiye on July 8, 2026.

(Photo by Harun Ozalp/Anadolu via Getty Images)

Trump 'Raising Prices on Americans Again' With 50% Tariff on Canadian Imports

"Americans have to pay high prices because Trump doesn’t understand how wind works," quipped one critic.

US President Donald Trump on Monday invoked an arcane legal provision to impose 50% tariffs on most imported goods from Canada, a move that critics said will hit US consumers already reeling from an unabated cost-of-living crisis and further strain relations with the nation's second-largest trade partner.

Trump invoked Section 338 of the Tariff Act of 1930, an unprecedented move the White House said is aimed at "offsetting the burden and disadvantage on US commerce from Canada’s discriminatory treatment of US commerce" and "leveling the playing field for crucial American exports—cars, alcohol, and dairy."

The new tariffs exempt energy products, potash, fish, and critical minerals.

“While the administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national security-sensitive sectors,” US Trade Representative Jamieson Greer said in a statement.

“Specifically, 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," Greer added. "Today, President Trump took decisive action to hold Canada accountable for its retaliation and discrimination, delivering on his promise to correct trade imbalances and ensure fairness for American workers, farmers, and businesses.”

While the administration's official communications cite economic reasons for the new tariffs, Trump in recent days has repeatedly cited the Canadian wildfires as justification for the move.

“I told them. I mean, you got to stop these fires from coming in, and you know poisoning our air," Trump said of Canada on Sunday evening. "Our air has been poisoned. Maybe they should pay us some damages or something, or we should do some tariffs."

The president's linkage of the wildfires and tariffs drew widespread ridicule, with Democratic New York Gov. Kathy Hochul posting on X, "Only Donald Trump could see wildfire smoke and decide the answer is more tariffs."

Pod Save America co-host Dan Pfeiffer said on social media, "Americans have to pay high prices because Trump doesn’t understand how wind works."

According to We Pay the Tariffs, a small business coalition, Trump’s capricious tariffs have cost American businesses and consumers upward of $317 billion since March 2025.

That month, Trump imposed 25% tariffs on many Canadian goods and 10% on Canadian energy products. The administration later modified or paused some of those tariffs.

Ottawa has criticized the tariffs and rejected the US justification that Canada is unfairly restricting American products.

"I’ll never stop fighting to protect Ontario," Doug Ford, the province's right-wing premier, said in response to Trump's move. "If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar."

Some Democratic US lawmakers blasted the new tariffs.

"Trump is raising prices on Americans, again, by jacking up tariffs by 50% on Canadian goods bought by Americans," Rep. Ted Lieu (D-Calif.) said on social media. "Democrats will flip the House. And on day one of next term, Democrats will introduce legislation to repeal Trump’s disastrous tariffs. And we will pass it."

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