The United States will impose an additional 50% tariff on a wide range of Canadian products starting August 19. The White House describes the move as a response to Canada’s allegedly discriminatory trade practices against American automobiles, alcohol, and dairy products.
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New tariffs will affect goods worth nearly $20 billion
President Donald Trump approved the measure by signing three documents, invoking Section 338 of the U.S. Tariff Act of 1930. The tariffs will also apply to products covered under the USMCA agreement and will impact items such as cement, wine, furniture, clothing, hockey sticks, fishing rods, and wigs.
Critical minerals, potash, energy, fish, and goods already subject to other trade measures are exempt. According to the Office of the U.S. Trade Representative, the new tariffs will affect Canadian imports worth nearly $20 billion, representing approximately 5.2% of last year’s imports from Canada.
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Canada criticizes Washington’s move and offers further negotiations
The White House claims that Canada disadvantages American automobiles through tariffs and quotas, and that most Canadian provinces have restricted the sale of U.S. alcohol. According to Washington, imports of American automobiles to Canada have declined by 22% year-over-year, and imports of alcoholic beverages have dropped by as much as 81%.
Canadian Prime Minister Mark Carney stated that his government has submitted proposals to resolve the trade disputes and is ready to continue intensive negotiations. At the same time, he warned that the escalation of tariffs will increase costs for households, particularly in the United States, and will further damage relations between the two countries.
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Source: ÄŚTK
