US imposes new 50% tariffs on some Canadian products

The United States is imposing a tariff of 50 per cent on a wide range of Canadian products in response to what it called Canada’s “discriminatory treatment” of US cars, alcohol, and dairy, according to the White House.

US President Donald Trump signed three proclamations to impose the tariffs under a nearly century-old trade law, Section 338 of the Tariff Act of 1930, which allows for tariffs of up to 50 per cent on imports from specific countries.

The products covered by the tariffs range from wine to hockey sticks to cement, according to a White House fact sheet. The new tariffs would also apply to a variety of other items including dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs.

“While the Administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national-security sensitive sectors,” US Trade Representative Jamieson Greer said in a statement.

The office of Canadian Prime Minister Mark Carney did not immediately respond to a request for comment.

The announcement comes just days after Trump blamed Canada for wildfire smoke spreading across the United States and threatened to add the “incalculable cost” of dealing with the pollution to existing tariffs on Canadian goods.

The tariffs announced on July 20 take effect on Aug 19 and apply regardless of whether goods qualify under the US-Mexico-Canada Agreement, though energy, potash, fish, critical minerals and products already covered by Section 232 tariffs are exempt.

The White House cited Canada’s “protectionist” dairy system as well as tariffs and quotas on cars imported to Canada from the US but not from other countries as among the reasons for the tariffs.

It also cited the fact that most Canadian provinces have halted the sale of US alcohol, which they did in response to previous US tariffs.

The White House said Canadian imports of US motor vehicles dropped by 22 per cent and imports of US alcoholic beverages declined by 81 per cent over the past year. REUTERS