Trump announces new 50% tariffs on Canada to combat 'discriminatory' trade practices
According to a fact sheet released by the White House, the tariffs will take effect in thirty days under the legal authority of Section 338 of the Tariff Act of 1930.
Donald Trump and Mark Carney at the G7 summit/ EVELYN HOCKSTEIN
The White House announced a 50% tariff on various products originating from Canada. In a statement, the Trump administration noted that the measure aims to "ensure fair treatment for U.S. exports," arguing that Canada's trade practices "have harmed and disadvantaged hardworking Americans."
According to the statement, the tariffs will take effect in thirty days under the legal authority of Section 338 of the Tariff Act of 1930. Among the goods subject to the new tariffs are wines, cement, and hockey sticks. However, sectors considered strategic for the United States—such as energy, potash, critical minerals, and certain seafood products—will be exempt.
As explained by the White House in a fact sheet, the measure is in response to various Canadian trade policies that "harm" U.S. producers. "President Donald Trump is countering the burden and disadvantage that Canada's discriminatory treatment imposes on U.S. trade, and is leveling the playing field for key U.S. exports: automobiles, alcohol, and dairy products," the statement reads.
"Today, President Trump took decisive action to hold Canada accountable for its retaliation and discrimination, delivering on his promise to correct trade imbalances and ensure fairness for American workers, farmers, and businesses," Jamieson Greer, U.S. Trade Representative, said.
In addition, Greer's office confirmed that the new tariffs will apply to "nearly $20 billion in imports" from Canada.
What is Section 338 of the Tariff Act?
The provision allows for tariffs of up to 50% on the value of imports from that country—in this case, Canada.
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