US President Donald Trump has threatened to impose reciprocal tariffs on Canadian dairy products and lumber, citing high tariffs imposed by Ottawa. Trump accused Canada of “ripping us off” for years on these trade issues, and warned that his administration could impose the same tariffs unless Canada drops its current rates.
The comments come as part of Trump’s ongoing trade pressure campaign against the Canadian government, which he accuses of failing to stop the flow of fentanyl across the northern US border. Most of the $1.6 trillion in two-way US-Canada trade is duty-free under the USMCA deal signed by Trump in 2020, but dairy products and lumber are exceptions.
Trump said Canada’s tariff rates on dairy products were “tremendously high”, at 250%, while tariffs on lumber were also “very difficult” to deal with. He announced that his administration would match Canadian tariffs through industry-specific investigations, aiming to make the trade more equal.
The move could lead to a significant increase in US tariffs on Canadian softwood lumber imports, potentially adding $7,500 to $10,000 to the cost of an average single-family home. Canada’s industry minister, Francois-Philippe Champagne, expressed frustration with Trump’s shifting goals and urged Ottawa to find normalcy in its relationship with the United States.
The White House has also announced that US tariffs on steel and aluminum will increase to 25% effective next Wednesday, subjecting hundreds of downstream products to those tariffs.
Source: https://www.reuters.com/world/us/trump-says-tariffs-could-go-up-over-time-fox-business-interview-2025-03-07