US President Donald Trump on Monday imposed an additional 50 percent tariffs on certain goods from Canada, describing the measure as a response to Ottawa’s discriminatory treatment of American products.
The new tariffs cover motor vehicles, dairy products and alcoholic beverages. They will take effect 30 days after the signing of the relevant proclamations.
The White House issued a fact sheet outlining the details. It stated that the action aims to hold Canada accountable for continued discrimination and unequal treatment of US commerce that has disadvantaged American workers.
Three proclamations were signed under Section 338 of the Tariff Act of 1930 to provide a level playing field for key American exports. The tariffs apply to a range of Canadian imports including wine, hockey sticks and cement, regardless of origin under the US-Mexico-Canada Agreement.
The measures will not apply to energy, potash, goods covered by Section 232 tariffs or certain other items such as fish and critical minerals.
The fact sheet noted that Canada imposes tariffs and quotas on US car imports that are not applied to vehicles from other countries. These quotas are said to encourage US automakers to invest in Canada instead of the United States.
Canada was one of only two countries, alongside China, that chose to retaliate against earlier US tariffs rather than negotiate. Imports of US alcoholic beverages, cheese and motor vehicles into Canada have declined sharply. Motor vehicle imports fell by 22 percent or 5.6 billion dollars compared with the prior year, while alcoholic beverage imports dropped 81 percent or 582 million dollars over the same period.
