U.S. to Hit Canada with Broad 50% Tariffs

Canada faces the threat of steep new U.S. trade measures after the Trump administration on Monday announced plans to impose a 50% tariff on Canadian imports starting in 30 days, accusing Ottawa of discriminating against U.S. exports, including alcohol, automobiles, and dairy products. The White House said the tariffs would cover a broad range of goods, from hockey sticks to cement, and would also apply to products covered under the U.S.-Mexico-Canada Agreement (USMCA) that had been exempt from previous tariff actions. Only a limited number of products would be spared, including energy, critical minerals, potash, fish, and goods already subject to sector-specific Section 232 tariffs. The move marks a significant escalation in trade tensions between the two neighboring economies and could disrupt cross-border supply chains if implemented.

Canada posted a trade surplus of C$4.24 billion in May of 2026, picking up from an upwardly revised C$3.41 billion surplus in the previous month and above market expectations of a C$2.9 billion to mark a third consecutive positive balance of trade. Exports rose by 0.9% to a record high of $77.1 billion, a fourth consecutive increase. Foreign sales surged 37% for non-metallic minerals as the war in the Middle East triggered a global supply crunch of sulphur and lifted prices for Canadian sales. Exports were also higher for aluminum and alloys (50.7%) and broader consumer goods (3.9%), offsetting a 2% decline in energy products as oil and gas prices eased. In the meantime, imports fell by 0.2% from the record high last month to $72.9 billion. The drop was solely due to a 33% slide in gold, silver, and platinum group metals. These were enough to offset higher foreign purchases elsewhere.

Canada reported a trade surplus of C$2.7 billion in April 2026, up from C$1.8 billion in the prior month and slightly surpassing market forecasts of a C$2.6 billion. This marked the second consecutive trade surplus, and the largest since January 2025. Exports rose 1.6% month-on-month to a fresh record of $75.2 billion, with gains in 9 of 11 product categories, led by energy products (+9.7%). Notable increases were also seen for farm, fishing and intermediate food products (+8.9%) and motor vehicles and parts (+5.9%), partly offset by a 17.5% decline in metal and non-metallic mineral product exports. Meanwhile, imports edged up 0.3% to a new peak of $72.4 billion, mainly on account of basic and industrial chemical, plastic, and rubber products (16.9%); and electronic and electrical equipment and parts (4.2%).The country's trade surplus with the United States widened to C$9.5 billion in April, the largest surplus since February 2025, from C$7.8 billion in March