President Trump on Monday signed three proclamations to impose 50% tariffs on some Canadian goods in response to what the White House called “discriminatory treatment of American products.”

“By doing so, President Trump is offsetting the burden and disadvantage on U.S. commerce from Canada’s discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports—cars, alcohol, and dairy,” a fact sheet released by the White House read.

Trump signed the proclamations “pursuant to Section 338 of the Tariff Act of 1930.”

More from The New York Times:

The tariffs, which go into effect in 30 days, would be imposed on a range of Canadian exports, including wine, hockey sticks, cement, dairy products, plywood, paper and furniture. Administration officials said the taxes were punishment for Canadian discrimination against three U.S. industries: motor vehicles, dairy and alcohol.

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The tariffs will undoubtedly reignite a trade clash with Canada, one of America’s closest allies and its second-largest trading partner after Mexico. Canada has been in Mr. Trump’s cross hairs since its government retaliated against tariffs that the president imposed on a wide range of products last year.

Trump officials have repeatedly complained that some Canadian provinces have halted purchases of U.S. alcohol and that Canada was one of only two nations, along with China, to hit back against Mr. Trump’s tariffs with its own levies. U.S. officials also say that Canada imposes certain tariffs and quotas on U.S. cars and restrictions on American cheese.

The new tariffs will be imposed under an obscure legal provision, Section 338 of the Tariff Act of 1930, which Congress wrote as the Great Depression deepened. The law allows the president to put tariffs of up to 50 percent on imports from countries that discriminate against U.S. commerce uniquely, as compared to other countries.

“These Section 338 tariffs apply to all covered goods regardless of whether a good originates under the U.S.-Mexico-Canada Agreement (USMCA),” the fact sheet read.

“These Section 338 tariffs will not apply to energy, potash, products subject to tariffs under Section 232, and certain other goods, such as fish or critical minerals,” it continued.

“Canada imposes certain tariffs and quotas on cars imported to Canada from the U.S., but not on imports from other countries. Canada also administers these quotas in a way that compels U.S. auto companies to invest in production in Canada instead of the United States,” it added.

“Canada imposed an unfair tariff scheme on American cars. As a result, Canadian imports of U.S. cars fell ~22%, costing American industry BILLIONS,” the White House stated.

“President Trump won’t put up with Canada’s trade schemes. The U.S. will levy a 50% TARIFF on some Canadian products,” it added.

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Earlier this month, the Trump administration said it would not renew that trade agreement, known as USMCA, opting instead to cast a shadow over the treaty’s future by triggering a series of annual reviews.

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Last week, Trump tore into Canada over the wildfires blazing through northwestern Ontario, which led to major air pollution issues across large areas of the U.S. mainland.

Claiming the issue has harmed the U.S. to the tune of billions of dollars, Trump wrote on Truth Social that those costs “must of necessity be added to the TARIFFS Canada is currently paying.”

One of the senior officials on Monday specified that the newly announced 50% tariffs on Canadian goods are not related to the wildfires — but added that Trump “has asked for options on that.”

Read the full White House fact sheet HERE.

 

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