President Donald Trump has launched a surprise 50 percent tariff on more than $20 billion worth of Canadian imports – a move that sharply escalates tensions between Washington and Ottawa, threatening to disrupt commerce in North America and add to costs for businesses and consumers.
The duties, set to begin in 30 days, on Aug. 19, cover everything from Canadian wine, cheese and clothing to furniture, cement and hockey equipment. In a statement Monday morning, the White House cited “discriminatory practices by Canada against U.S. Exports of automobiles, dairy products and alcohol.”
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President Trump invoked a provision in the U.S. Tariff Act of 1930 that allows presidents to place duties of up to 50 percent on imports from countries found to be discriminate against U.S. Commerce. Section 338, an almost forgotten tool in the U.S.
Tariff playbook, has apparently not been used since near the dawn of the last century.
In announcing the tariffs, the White House said they were aimed at helping to “level the playing field” for U.S. Exporters, complaining that Canada has blocked access for U.S. Auto manufacturers, purged U.S.
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Alcoholic beverages from Canadian store shelves and preferentially bought dairy from outside North America. Canadian Prime Minister Mark Carney blasted the action Monday, stating that Ottawa had pursued a negotiated settlement, and called it an undermining of the North American trade system.
Trade analysts have warned that the new tariffs could create more inflation, complicate supply chains and stall current North American free trade talks.
