Trump announces new 50% tariff on Canadian goods citing alcohol, dairy disputes

U.S. President Donald Trump signed an executive order on Monday to impose 50 per cent tariffs on Canadian goods set to begin August 19, including goods previously exempted under the Canada-United-States-Mexico-Agreement (CUSMA).

The tariff is in response to what the U.S. administration views as discriminatory trade practices by Canada, including Canadian tariffs on American autos, U.S. alcohol bans in some Canadian provinces and dairy import limits.

“Today, President Donald J. Trump signed three Proclamations pursuant to Section 338 of the Tariff Act of 1930 to impose additional 50% tariffs on certain goods of Canada in response to Canada’s discriminatory treatment of American products,” reads a release on the White House website. “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.”

Trump used Section 338 of the Tariff Act of 1930, which allows a president to impose duties on a foreign country that discriminates against U.S. commerce.

The full list of Canadian products subject to the new tariff includes natural honey, wooden tableware, hockey sticks and several alcoholic beverages.

More to come.

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