Donald Trump Imposes 50% Tariffs on Canadian Goods

President Donald Trump imposed 50% tariffs on Canadian goods, including hockey sticks and cheese, by utilizing a Depression-era provision of the Smoot-Hawley Tariff Act. The measure affects roughly 2% of bilateral trade and is considered a violation of the US-Mexico-Canada Agreement. This move has contributed to a decline in Canadian favorability toward the United States.

Despite these trade tensions, Canada has attracted record foreign investment. In the year ending May 31, foreign investors poured C$256 billion into Canadian stocks and bonds. Since Mark Carney became prime minister in March 2025, the market capitalization of corporate Canada grew 41% to $4.5 trillion.