U.S. sets 50% tariffs on some Canadian goods
The Trump administration says the levies will start in 30 days, with energy, potash, fish and critical minerals excluded.
By Frankie Delgado · News Reporter
2 min read
The Trump administration said Monday it will impose 50% tariffs on some imports from Canada, raising the heat in a trade fight with one of America’s biggest trading partners.
Senior U.S. administration officials said the move is aimed at what Washington views as unfair treatment of American automobile, dairy and alcohol products by Ottawa. The tariffs are scheduled to take effect in 30 days, a window officials said leaves time for talks between the two countries.
Officials said the administration is using Section 338 of the Tariff Act of 1930 to put the duties in place. According to those officials, this is the first time that provision has been used for such tariffs.
The new duties will not apply to every Canadian export. Senior officials said energy, potash, fish and critical minerals are exempt from the levies.
Tariffs land as USMCA strains grow
The announcement comes after relations between Washington and Ottawa worsened during President Donald Trump’s second term, MarketWatch reported. Earlier this month, Trump declined to renew the U.S.-Mexico-Canada Agreement, the trade pact he negotiated with Canada and Mexico during his first term.
The USMCA will expire in 10 years if it is not renewed, according to the report. Canada and Mexico both want to renew the agreement. The U.S. and Mexico have been holding talks on bilateral trade issues, while discussions with Canada have moved more slowly.
Senior U.S. officials said the tariffs announced Monday will affect Canadian goods covered by the USMCA. They described the duties as defensive measures tied to what they called existing discrimination against U.S. exports in Canada.
Alcohol, cars and cheese at center of dispute
Administration officials pointed to several Canadian policies and actions in explaining the decision.
They said eight of Canada’s 10 provinces removed U.S. alcohol from store shelves last year after Trump imposed tariffs. They also said Canada has used tariffs and quotas on U.S.-made cars to pressure American auto companies to invest in Canada.
Officials further argued that Canadian tariff rates and quotas on American cheese are more restrictive than those applied to cheese imports from the European Union.
The tariffs announced Monday are separate from possible duties Trump has threatened against Canada over the effects of smoke from recent Canadian wildfires, according to the report.
The administration’s move adds another flashpoint to a North American trade relationship already under pressure from the uncertain future of the USMCA and slower U.S.-Canada negotiations.
This story draws on original reporting from MarketWatch.