Less than a day after standing alongside Prime Minister Mark Carney at the FIFA World Cup final, U.S. President Donald Trump reignited the Canada-U.S. trade fight, accusing Ottawa of “discriminating” against American businesses and threatening 50 per cent tariffs on a range of Canadian goods.
The latest escalation centres on Canada’s decision to remove U.S. alcohol products from provincial shelves last year, a move the White House says in a proclamation shared with the pubic unfairly hurt American producers while benefiting other countries.
From the hockey rink to the liquor cabinet, the latest round of U.S. tariffs is targeting products that touch some of the most recognizable parts of Canadian life. Nearly 500 categories are on the list, including dairy products, wine, whisky, hockey equipment and down jackets, along with a long list of everyday items ranging from tools to household goods.
The Trump administration argues the existing restrictions amount to “Canadian discrimination” against U.S. commerce, while Ottawa says Washington’s latest tariff actions violate the rules of the Canada-U.S.-Mexico Agreement (CUSMA).
“Canada unreasonably burdens and disadvantages U.S. alcoholic beverages but not alcoholic beverages of other countries,” the White House said in its proclamation announcing the tariffs, accusing Canada of placing American commerce at a disadvantage.
Trump’s proclamation Monday night pointed to a sharp decline in American alcohol exports to Canada following the restrictions, saying imports of U.S. alcoholic beverages fell by about 81 per cent between March 2025 and February 2026 compared with the previous year.
Responding Monday evening, Prime Minister Mark Carney accused the United States of taking trade actions “in direct violation” of CUSMA and said Canada remains prepared to intensify negotiations.
“We stand ready to intensify those discussions in the coming weeks,” Carney wrote, adding the government would “take any measures necessary” to support Canadian workers, businesses and families.
Expert says Trump’s tariff strategy is about ‘weakening Canada’
While the White House says the latest tariff threat is a response to what it calls “Canadian discrimination” against U.S. businesses, one trade expert says the bigger picture is about a broader effort to pressure Ottawa.
Daniel Béland, a political economist and director of the McGill Institute for the Study of Canada, says the timing of the announcement raises questions about whether the alcohol dispute is the true reason behind the tariffs.
“The discussions over CUSMA are part of the background to understand that decision,” Béland said in an interview with Yahoo News Canada. “I think that there is still the obsession of the White House and of President Trump with Canada.”
Daniel Béland, James McGill Professor in the Department of Political Science. (Image courtesy: McGill University)
Béland said he views the tariff threat as part of a larger strategy aimed at reducing Canada’s negotiating power.
“I think it’s about weakening Canada in a sense,” he said. “It’s probably a bargaining strategy for CUSMA to weaken Canada, but I think more generally, Trump’s agenda is to weaken Canada and to make it more vulnerable to U.S. demands.”
The latest escalation comes as Ottawa and Washington remain locked in a broader trade dispute, with Prime Minister Mark Carney accusing the United States of taking actions “in direct violation” of CUSMA.
Béland said Canada has legal options through the trade agreement, but warned there is no simple solution.
“There is no silver bullet or approach that will necessarily succeed here,” he said, adding that Canada will likely need to pursue political negotiations while continuing to defend its interests.
When it comes to the “Elbows Up” approach embraced by many Canadians, Béland said the focus is not just on the slogan and more about maintaining a firm negotiating position.
“It’s about standing your ground. You cannot just cave.”
Daniel Béland, political economist and director of McGill Institute
At the same time, Béland cautions that Canada cannot completely walk away from negotiations.
“Falling on your knees will be a sign of weakness and will actually make things worse for Canada,” he said. “We need to keep some form of negotiation or discussion going with the Americans.”
Béland said the challenge is finding common ground with an administration he argues has repeatedly shown uncertainty.
“There is no easy way out,” Béland said. “You have to stand firm, but at the same time, behind closed doors, there should be attempts at finding common ground.”
‘We’ll never back down’: Here’s how Canadians are responding
From “elbows up” calls to humour-filled reactions, Canadians are weighing in on the latest Canada-U.S. trade fight. Social media has become a battleground of opinions, with some urging shoppers to avoid American products, while others question whether the dispute could leave lasting damage between the two countries.
Here is what Canadians are saying in the comment section.
Responding to the latest U.S. tariff threat, Ontario Premier Doug Ford vowed Canada would stand firm, saying, “Together, we’ll stand united. We’ll never back down. We’ll never roll over.”
Screengrab of X comment courtesy: @fordnation/X
The latest tariff threat is prompting broader concerns about the future of the Canada-U.S. partnership, with one user writing “I genuinely don’t think the U.S.-Canada relationship can ever fully recover from this administration.”
Screengrab of X comment courtesy: @StatisticUrban/X
As the Canada-U.S. trade war escalates, not everyone is convinced the “Elbows Up” movement has helped Canada’s position.
One commenter argued the slogan has become “one of the worst tactical errors in Canada’s geopolitical history,” saying it may have resonated politically but made little sense as a negotiating strategy.
Screengrab of X comment courtesy: @lucyhargreaves4/X
The latest tariff dispute is reigniting calls from some Canadians to boycott American products, with one Nova Scotia resident urging shoppers to choose local and Canadian options over U.S. goods.
Screengrab of X comment courtesy: @GenXCanada/X
Not everyone is taking the latest trade tensions seriously. One Canadian joked about turning the ongoing tariff dispute into a drinking game, saying: “Every time they say ‘tariffs’ we take a shot of tequila.”
Screengrab of X comment courtesy: @OverStMungos/X
Experts are not all convinced Trump’s latest tariff threat will hold up. One Canadian economist says the U.S. legal tool behind the move is obscure, untested and could be challenged in court.
Screengrab of X comment courtesy: @JimboStanford/X