Trump imposes new 50% tariff on many Canadian imports
by Darryl Coote · UPIJuly 20 (UPI) -- President Donald Trump signed orders Monday to impose a new 50% tariff on many Canadian imports, blaming Ottawa's "discriminatory treatment" of U.S. products.
The tariffs take effect Aug. 19 and cover $20 billion worth of imports, ranging from wine, hockey sticks and electrical equipment to concrete.
The Trump administration named dairy products, U.S. motor vehicles and alcohol Monday as the three U.S. products it says Canada discriminates against.
"President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hard-working Americans," the White House said in a statement.
A few key Canadian imports are excluded from the new tariffs. These include energy products, potash, critical minerals, fish and some other goods.
The new tariffs could face legal challenges. Trump's invocation of Section 338 of the Tariff Act of 1930 -- which allows a U.S. president to mandate a tariff of up to 50% without congressional approval if a country is believed to be discriminating against U.S. goods -- is the first time it has ever been used.
Trump has long used tariffs as a mechanism for both punishment and negotiation. During his second term in office, Trump attempted to impose sweeping tariffs, including against Canada, but they were thrown out by the U.S. Supreme Court in February. Immediately afterward, Trump imposed a broad 10% import duty.
The tariffs announced Monday, which even apply to goods covered under the existing United States-Mexico-Canada free trade agreement, will join the 10% import duty on many Canadian goods, as well as previously imposed tariffs ranging from 10% to 50% on products, such as steel, aluminum, copper, automobiles and softwood lumber.
The new tariffs threaten to deepen the trade war between the United States and one of its closest allies, which has steadily distanced itself from Washington in trade as well as defense, amid Trump's second term.
Prime Minister Mark Carney of Canada described Trump's announcement of additional tariffs as the latest in a series of unilateral U.S. trade actions that violate their free trade agreements and harm both countries.
"This trade dispute has raised costs for families, particularly in the U.S.," Carney said in a statement.
"Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens."
Canada imposed retaliatory tariffs against the United States following the previous U.S. economic measures, and some Canadian politicians are calling on Ottawa to reciprocate the new 50% tariff.
"If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar," Ontario Premier Doug Ford posted on social media.
Saskatchewan Premier Scott Moe said if the tariffs are imposed, "Saskatchewan will be prepared to respond to keep our economy and our province strong and steady."
The premiers are to meet with Carney Thursday to discuss the development.
Last week, Trump threatened new tariffs on Canada as punishment for the smoke from hundreds of wildfires that drifted over the border and affected some U.S. cities. However, there was no mention of the wildfires in the orders signed Monday.