US President Donald Trump has announced the introduction of new 50 percent tariffs on a wide range of goods imported from Canada. The White House confirmed that the President has signed the corresponding order.
The rationale provided for the tariffs is “discriminatory treatment” of US cars, as well as alcohol and dairy products, by the Canadian government. Daily consumer goods, such as wine and hockey sticks, as well as industrial products like cement, are affected. However, some key exports, including energy, potash, critical minerals, and fish, have been exempted.
These tariffs are scheduled to take effect in 30 days and mark a significant escalation in the trade conflict between the two North American neighbors. The new duties apply to all affected goods, regardless of whether the product falls under the existing USMCA free trade agreement involving Canada, the United States, and Mexico.
The United States already has active tariffs ranging from 15 to 50 percent on Canadian steel, aluminum, and copper. Furthermore, Washington has imposed a 35 percent duty on Canadian softwood and a 25 percent tax on non-American components used in vehicles. In retaliation, Canada has levied a 25 percent counter-tariff on selected US imports, including steel, aluminum, and vehicles.
For these new measures, Trump cited a legal provision dating back to 1930. This provision allows US authorities to take action against countries that they accuse of engaging in “discriminatory” trade practices.
