Trump threatens new tariffs on Canada including 250% tax on major good as trade war heats up

Claiming the US has been treated ‘unfairly’ by Canada, President Trump has hinted at placing dollar-for-dollar tariffs on Canadian goods

As the trade war between the US and three major global players continues, President Donald Trump has threatened to hit Canada with a huge 250 percent tariff on specific grocery items.

Yesterday (March 7), the 78-year-old President addressed reporters from the Oval Office, voicing frustration over what he described as years of exploitation by the nation’s northern neighbor. He warned that in response, the administration is now considering imposing a tariff ten times more severe than the existing 25% already levied on Canadian products.

Speaking to reporters in the Oval Office, President Donald Trump slammed Canada for treating the US 'unfairly' (Anna Moneymaker/Getty Images)

This statement followed a one-month extension on the initial import tax. “Canada has been ripping us off for years on lumber and dairy products,” the 78-year-old remarked, highlighting that Canada imposes tariffs as steep as 241% on U.S. dairy imports. However, such extreme taxes are rarely applied, as they only take effect if U.S. dairy exports exceed set quotas.

Canada enforces these measures to safeguard its domestic dairy industry, though many American dairy farmers argue that these policies place them at an unfair disadvantage.

US dairy farmers believe they have been unfairly treated by the Canadian government, like the ones that own this herd in Onalaska, Wisconsin (KEREM YUCEL/AFP via Getty Images)

Following a trade dispute panel’s ruling in favor of Canada under the United States-Mexico-Canada Agreement (USMCA), Wisconsin Senator Tammy Baldwin voiced her disappointment.

“Wisconsin dairy farmers work hard every day to deliver world-class products, and they deserve fair competition on the global stage,” Baldwin stated.

“This decision contradicts the agreement our country made with Canada and unfairly disadvantages our ‘Made in Wisconsin’ dairy products,” she added.

In response, former President Trump has now threatened to impose tariffs matching those set by Canada.

Canadian dairy products could be hit with a 241 percent tariff on imports into the US (Getty stock)

“We may do it as early as today, or we’ll wait until Monday or Tuesday,” Trump announced to reporters on March 7. “We’re going to charge the same thing. It’s not fair. It never has been fair, and they’ve treated our farmers badly.”

In response, Canadian Trade Minister Mary Ng pushed back against Trump’s accusations, calling them “not true.”

“I learned about it just as I was walking into this press conference,” Ng revealed. “If these tariffs are imposed at that magnitude, it’s completely unjustified.”

Addressing Trump’s fluctuating approach to trade policies, she added, “There’ll always be some modifications. If you have a wall in front of you, sometimes you have to go around the wall instead of through it.”