Trump Imposes 50% Tariffs on Canada Amid Aluminum Shortage

The Donald Trump administration imposed 50% tariffs on specific Canadian imports over the weekend to pressure Canada into resolving long-standing market access disputes under the USMCA. The move is supported by the National Milk Producers Federation and the U.S. Dairy Export Council, which allege Canada has used loopholes to sidestep trade rules and failed to provide duty-free access for U.S. dairy products.

Simultaneously, the U.S. government has maintained 50% metals duties despite nearly reaching a deal last week to halve the aluminum levy. Domestic steel and aluminum sectors opposed the reduction, though Canada currently provides more than half of the aluminum consumed in the U.S.

On Monday, Trump acknowledged the heavy reliance on Canadian imports, stating the U.S. desperately needs aluminum. During a rally for Oklahoma gubernatorial candidate Mike Mazzei, he advocated for the approval of a new aluminum plant in Inola, Oklahoma, to increase domestic production. These trade tensions have reportedly increased domestic political support for Canadian Prime Minister Mark Carney and the Liberal Party.