US President Donald Trump on Monday signed orders to impose new 50 per cent tariffs on several Canadian goods, accusing Ottawa of “discriminatory treatment” against American alcohol, automobile and dairy
products.
The tariffs will come into effect in 30 days and will cover a range of products, including wine, hockey sticks, cement, dairy items, furniture, clothing and other goods, according to a White House fact sheet.
Trump imposed the tariffs using Section 338 of the Tariff Act of 1930, an untested legal provision that allows the US to place duties on imports from specific countries.
The White House said the new tariffs would not apply to energy, potash, fish, critical minerals and goods already affected by sector-specific tariffs. However, they will also apply to products covered under the US-Mexico-Canada Agreement (USMCA).
US Accuses Canada Of Unfair Trade Practices
The White House said Canada’s actions against US products were the reason behind the new tariffs, accusing Ottawa of restricting American exports and protecting its domestic industries.
“President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hardworking Americans,” White House in a statement said.
US Trade Representative Jamieson Greer said Canada had removed US alcohol products from store shelves, provided better market access to European Union dairy products and limited US vehicle exports.
“Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States,” Greer said.
He added that the tariffs were aimed at holding Canada “accountable for its retaliation and discrimination”.
The White House also said Canadian imports of US motor vehicles fell by 22 per cent, while imports of US alcoholic beverages dropped by 81 per cent over the past year.
Fresh Strain In US-Canada Relations
The latest tariff move is expected to further strain ties between Washington and Ottawa. The announcement came days after Trump threatened additional tariffs on Canada over wildfire smoke that spread into the United States, warning that the “incalculable cost” of dealing with the pollution could be added to existing tariffs on Canadian goods.
The White House said Canada was one of only two countries, along with China, to retaliate against Trump’s earlier tariffs.
The new duties are set to take effect on August 19. The office of Canadian Prime Minister Mark Carney has not yet issued a response to the announcement.
(With inputs from agencies)
