On the 20th, US President Trump signed multiple proclamations to impose a 50% tariff on hundreds of specific goods imported from Canada, in accordance with Section 338 of the 1930 Smoot-Hawley Tariff Act.
A fact sheet released by the White House on the same day showed that the US will impose tariffs on Canadian goods such as wine, hockey sticks, and cement, even if these items comply with the United States-Mexico-Canada Agreement (USMCA). However, the newly imposed tariffs do not apply to energy, products subject to tariffs under Section 232 of the 1962 Trade Expansion Act, or critical minerals and similar items.
The White House stated that these tariffs are intended to offset the burdens and disadvantages imposed on US businesses by discriminatory Canadian practices. The new tariff measures will come into effect on August 19, Eastern Time.
According to the White House announcement, Canada imposes tariffs and quota restrictions on US automobiles but does not apply such restrictions to other countries. Canada also forces US car companies to invest and produce in Canada through quota limitations. Most regions in Canada have stopped procuring, distributing, and retailing American alcoholic beverages, without imposing similar restrictions on other countries. The tariff quotas that Canada applies to US cheese are more restrictive compared to those for similar products from the EU.
Canadian Prime Minister Carney issued a statement on the same day, saying that the US government’s announcement of its intention to impose 50% tariffs on a large number of Canadian goods is the latest in a series of unilateral trade actions violating the USMCA. Canada has proposed a series of detailed proposals to resolve trade disputes with the US and is prepared to further engage in discussions in the coming weeks.
He stated that Canada will take all necessary measures to bolster its own strength.