Trump imposes 50% US tariffs on some Canadian goods, citing discrimination
US President Donald Trump has imposed new 50% tariffs on a range of Canadian goods, including wine and hockey sticks, claiming discriminatory treatment by Ottawa. The tariffs take effect in 30 days.
US President Donald Trump on Monday signed an order imposing new 50% tariffs on many Canadian goods, alleging “discriminatory treatment” by Canada against US alcohol, automobile and dairy products. The tariffs will take effect in 30 days and cover items such as wine, hockey sticks and cement, according to a White House fact sheet.
The move has sparked fears of escalating trade tensions between the two neighbours. Trump used a little-tested legal provision — Section 338 of the Tariff Act of 1930 — for these duties, after the Supreme Court struck down several of his earlier tariffs earlier this year.
The new tariffs do not apply to energy, potash, and goods already subject to sector-specific tariffs, the White House said. However, they will hit products covered under the US-Mexico-Canada free trade agreement (USMCA). Previously, Trump’s tariffs generally exempted goods entering under the North American trade pact.
The White House noted that Canada was one of only two countries — along with China — that retaliated against Trump’s tariffs last year. Also, most Canadian provinces have stopped buying US alcohol, boycotting products due to Trump’s tariff threats and his repeated calls for annexation of Canada.
US Trade Representative Jamieson Greer said in a statement: “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.” He added that the tariff announcement aims to “hold Canada accountable for its retaliation and discrimination.”
The announcement raised concerns of escalation among businesses, as it threatens to strain ties with the second-largest US trade partner.
