U.S. President Donald Trump greets Canadian Prime Minister Mark Carney at the Gaza Summit in Sharm el-Sheikh, October 13, 2025. Following a visit to Israel after the brokered ceasefire went into effect, President Trump landed in Egypt for the Gaza summit on October 13.
Evan Vucci | AFP | Getty Images
President Donald Trump is in new trade talks with Canadian Prime Minister Mark Carney, just hours before the U.S. imposes 50% tariffs on hockey sticks, wine and other Canadian imports, according to various reports Tuesday.
Mr. Trump and Mr. Carney met late Monday and are scheduled to meet again on Tuesday, according to Bloomberg. Fox Business reported that Monday night’s summit failed to convince President Trump to postpone future retaliatory tariffs. The White House did not immediately respond to CNBC’s request for comment.
The new tariffs are scheduled to take effect on Wednesday unless an agreement is reached to postpone or cancel them. Business leaders have warned that this threat alone creates significant uncertainty and is already impacting sales.
If no deal is reached, it would be the latest import tariff imposed on Canada by President Trump, a big fan of using tariffs to protect domestic industry and raise government revenue. The two countries have been close allies and major trading partners for many years.
The 50% tariffs were announced last month in response to what the Trump administration called Canada’s trade discrimination in the auto, alcohol and dairy industries.
They are imposed under Section 338 of the Tariff Act of 1930, a Depression-era law that has rarely, if ever, been invoked and has been ignored for decades.
The new tariffs will affect about $20 billion worth of Canadian imports, according to the Office of the U.S. Trade Representative.
That’s just a fraction of the $382 billion the U.S. imported from Canada last year, but high taxes on eligible products could still pose a major challenge for Canadian sellers.
“A 50 per cent tariff essentially makes it uneconomic to sell products to certain markets,” Dan Kelly, president of the Canadian Federation of Independent Business, said in an interview with CNBC.
Kelly said many of the group’s 103,000 members could “stop selling in the U.S.” if new tariffs were imposed. Some companies are already reporting that U.S. buyers are holding off on future orders in anticipation of new tariffs, he added.
President Trump has already imposed various tariffs on Canada and certain exports, including metals, lumber and auto parts. President Trump also imposed steep tariffs on Canada over suspected drug trafficking, which the Supreme Court struck down in February.
But Section 338 tariffs “hit right at the heart of small business trade between Canada and the United States” because many of the products affected are consumer-oriented, Kelly said.
“This is very concerning for a wide range of businesses in Canada,” he said.
Some of the Trump administration’s tariffs on Canada include exemptions for goods that comply with the North American Trilateral Trade Agreement, known as USMCA.
The Trump administration announced last month that it would not renew the trade pact, triggering a series of annual reviews that raised questions about its future.
Neil Herrington, senior vice president for the Americas at the U.S. Chamber of Commerce, said in a statement Tuesday morning that the new tariff hikes under the USMCA would “damage our economies, raise costs for American families, further disrupt critical supply chains, and jeopardize 13 million American jobs that rely on trade.”
