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50% tariffs signed
President Donald Trump signed three proclamations on Monday imposing new 50% tariffs on many Canadian goods, with the White House citing “discriminatory” treatment by Ottawa against U.S. alcohol, automobile and dairy products.
“Le président américain Donald Trump a signé lundi un décret imposant 50% de droits de douane supplémentaires sur plusieurs produits canadiens «en réponse au traitement discriminatoire du Canada sur les produits américains», pointant les conflits commerciaux sur les produits laitiers, l’alcool et l’automobile”
The tariffs are set to take effect in 30 days and cover items including wine, hockey sticks and cement, while excluding energy, potash, and certain other goods such as fish or critical minerals.
The White House said the new duties will apply even to products covered under the USMCA, and the administration official said each Section 338 proclamation imposes a 50% tariff on a different set of Canadian imports.
In response, Canadian Prime Minister Mark Carney said the government believes in the “benefits of free and fair trade” and that “Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens.”
Section 338 dispute
The Trump administration said it is using Section 338 of the Tariff Act of 1930, a legal provision it described as allowing action against countries that allegedly discriminate against U.S. commerce.
A senior administration official told reporters the tariffs are meant to “hold” Canada “accountable” for “substantial retaliation against the United States,” and the official said the impacted products range from “wine to hockey sticks to cement.”
The Guardian reported that the White House fact sheet claims Trump is “taking action to hold Canada accountable for its continued discrimination,” while the same article notes the tariffs include goods previously protected from import taxes under the USMCA.
CBS News reported that the new levies are set to take effect on Aug. 19 and said the White House accused Canada of “unreasonable, unequal, and discriminatory actions” through tariffs or import restrictions on certain American goods.
Retaliation risks
The announcement came as Canada’s response to earlier U.S. tariffs included a boycott in which “all but two Canadian provinces and territories have halted the purchase, distribution, or retailing of U.S. alcoholic beverages,” according to an administration official.
“US President Donald Trump will impose new 50 percent tariffs on many Canadian goods, claiming “discriminatory treatment” by Ottawa against US alcohol, automobile and dairy products”
The White House also pointed to Canada’s actions on dairy and autos, and Al Jazeera reported that USTR Jamieson Greer charged that Canada “has taken US alcohol products off Canadian shelves” and “put a cap on US vehicle exports to Canada.”
Ontario Premier Doug Ford said on social media that “If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar,” while the Canadian Chamber of Commerce’s Candace Laing called the move a “regrettable escalation” and urged both sides to use the 30-day window to “make meaningful progress in advancing formal talks.”
AP News warned the tariffs could “unleash a new wave of economic chaos,” and it quoted Scott Lincicome saying, “The invocation of 338 is the nuclear option for Trump tariffs.”
