LANSING, Mich. (News 10) – President Donald Trump plans to impose new 50% tariffs on most Canadian goods, including auto parts, sporting equipment, alcohol and dairy products, and more.
The announcement comes as the new Gordie Howe International Bridge, linking Detroit to Windsor, Ontario, is set to open Monday.
President Trump argues Canada has been unfair to American manufacturers.
In a statement, Canadian Prime Minister Mark Carney said Canada believes in “free and fair trade” and is prepared to respond:
“This is the latest in a series of unilateral U.S. trade actions that began with the U.S. imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement between Canada, the United States, and Mexico.
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Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernise CUSMA. We stand ready to intensify those discussions in the coming weeks.”
Michigan State University international relations professor Matt Zierler said the tariffs raise the risk of a new trade war between the two countries.
“A 50% tariff on goods between the U.S. and Canada is actually a big deal. Because the U.S. and Canada are huge trading partners. And for the economies of both countries, but even if you look more micro, the economy of Michigan, we’re really dependent on cross-border trade,” Zierler said.
Zierler added that even if Canada does not respond with retaliatory tariffs and the U.S. government collects more revenue, it would not necessarily result in a financial benefit for consumers.
“It’s this point of we’re taking our closest ally. An ally we don’t even think about as a threat. And increasing pressure on them for likely little benefit,” Zierler said.
Jerry Carpenter of Liskey’s Auto and Truck Service in Lansing said his shop has navigated tariffs before, but a 50-percent rate would slow both his business and his customers.
“So we have to adjust because we have our margins that we need to stay in in order to be profitable and stay open,” Carpenter said.
Carpenter said the uncertainty around parts pricing is already a challenge.
“What I pay for a brake pad and a set of brake rotors today may be different tomorrow. It’s almost like going to the gas station. It’s kind of a mystery, you know,” Carpenter said.
Last week, President Trump said he was holding Canada responsible for wildfire smoke drifting into the U.S. and suggested Canada should compensate the U.S. through higher tariffs. That situation was not referenced in this week’s tariff announcement.
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