WASHINGTON, D.C. — President Donald Trump imposed new 50% tariffs on approximately $20 billion in annual Canadian imports Monday, accusing Canada of discriminating against American vehicles, alcohol and dairy products.
Trump invoked Section 338 of the Tariff Act of 1930, a rarely used provision allowing presidents to impose duties of up to 50% on countries determined to have disadvantaged U.S. commerce. The three presidential proclamations mark the law’s first known use in nearly a century.
The tariffs take effect Aug. 19, providing 30 days for the two governments to negotiate. Products affected include wine, cement, dairy goods, furniture, clothing, fishing equipment and hockey gear. Energy, potash, fish and critical minerals are excluded.
Some products previously qualifying for tariff-free treatment under the United States-Mexico-Canada Agreement will now face the additional duties. Canadian Prime Minister Mark Carney said the action violates the trade agreement and will increase costs for American consumers and businesses.
A White House official said Canada must be held accountable because it retaliated against earlier U.S. tariffs. Trump has also directed aides to examine whether additional trade penalties could be connected to smoke from Canadian wildfires entering the United States.
The USMCA remains in effect, but Washington recently declined to extend it beyond its current review period, beginning a process that could allow the agreement to expire in 2036.
Sources:
- BBC News – MBFC Rating
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
