US President Donald Trump has signed an executive order imposing a 50 percent tariff on a wide range of goods imported from Canada, escalating trade tensions between the two neighbouring countries.
The new tariffs will take effect on August 19th and were introduced in response to what Trump described as "unequal treatment" of American cars, dairy products and alcohol.
The White House says the measures are aimed at protecting American businesses.
The tariffs will apply to a range of products, including wine, hockey sticks and commercial cement. However, key Canadian exports such as energy, potash, critical minerals and fish have been exempted.
The latest move adds to existing US tariffs of between 15 and 50 percent on Canadian steel, aluminium and copper, as well as a 35 percent tariff on Canadian softwood lumber and a 25 percent tax on non-US parts used in vehicles.
Canada has also imposed 25 percent counter-tariffs on selected American steel, aluminium and vehicle imports.
While Trump recently threatened tariffs over wildfire smoke from Canada drifting into US cities, the executive order instead cites long-standing trade disputes involving the automotive, dairy and alcohol sectors.
The US claims Canada unfairly taxes American vehicles and parts not covered under the US-Mexico-Canada Agreement (USMCA), while also criticising Canada's dairy import system, which applies tariffs of more than 300 percent on imports above set quotas.
Canadian officials have been negotiating with the US in an effort to reduce existing tariffs.
President and CEO of the Canadian Chamber of Commerce, Candace Laing described the decision as "regrettable" but urged both sides to make meaningful progress in negotiations before the new tariffs come into effect.
Source: BBC News
