Canada Braces for New US Tariffs Amid Ongoing Trade Talks

Canada is bracing for a new round of 50% US tariffs this week on Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment, and other goods. The tariffs are part of President Trump's hardline approach towards trade with Canada since his return to the presidency last year. According to the US Census Bureau data, the new duties would cover nearly $20 billion of Canadian goods, amounting to about 5.2% of the $383 billion worth of goods imported from Canada in 2025.

The tariffs would apply even to products that qualify for preferential treatment under the US-Mexico-Canada Agreement, posing an added risk to Canada's economy. The auto tariffs on Canadian-made vehicles have emerged as a key sticking point in the talks between the two countries.

Alain Ouzilleau, owner of Cabico Ltd, a custom kitchen cabinet brand in Canada, said that if the tariffs are imposed the consequences for the industry could be severe. 'A 50% tariff is simply not something that manufacturers can absorb,' he stated.