Trump imposes 50% tariffs on Canadian goods, escalating trade dispute

U.S. shoppers, bars and sporting-goods stores faced a fresh hit as President Donald Trump imposed 50% tariffs on a range of Canadian goods, including hockey equipment and alcoholic beverages, with the duties set to begin in 30 days. The measure also covered milk and other dairy items, moving the dispute from Washington and Ottawa into the retail channels where price changes show up first.

Canadian booze and hockey gear are the clearest near-term targets. Liquor stores and bars that stock Canadian beer, wine and spirits will see import costs jump, while sporting-goods sellers that carry hockey sticks, skates and pads will have to decide whether to absorb the duty or push it onto customers. Border economies that depend on routine cross-border shopping and distribution now face another round of uncertainty as one of the most visible consumer trade fights in North America widens.

The administration framed the tariffs as retaliation for Canadian restrictions on U.S. alcohol, autos and dairy products. The White House also pointed to provincial alcohol bans, dairy supply management and car quotas as part of its justification. In Quebec, Premier Christine Fréchette called the new tariffs “unjustified and concerning,” underscoring how quickly a federal trade move turned into a provincial business problem.

The pattern is familiar to retailers on both sides of the border. In March 2025, Ontario’s liquor board removed U.S.-made alcohol from its shelves after earlier U.S. tariffs, and Ontario Premier Doug Ford said the LCBO sells nearly $1 billion of U.S. alcohol annually. That scale shows why tariff fights spill into everyday commerce fast: a policy aimed at leverage can change what stays on shelves, what businesses reorder and what consumers pay at the register.