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President Trump has signed three orders imposing 50% tariffs on a wide range of Canadian goods.
Getting into it: The three proclamations, all signed Monday, each target a different set of Canadian imports tied to a US industry the administration says Canada has treated unfairly: motor vehicles, dairy, and alcohol. The affected goods run well beyond those sectors, and include wine, hockey sticks, cement, electrical equipment, machinery, plywood, paper, and furniture.
Energy products, potash, critical minerals, certain fish, and goods already covered by national security tariffs are exempt. Crucially, unlike previous rounds, the orders include no carve-outs for goods that qualify under the USMCA. The tariffs take effect in 30 days.
To get this done, the administration invoked Section 338 of the Tariff Act of 1930, which allows tariffs of up to 50% on countries found to discriminate against US commerce. Trade lawyers who have studied the provision say there’s no public record of it being used since 1949.
Canadian Prime Minister Mark Carney released a statement after the announcement, saying that Canada “believes in the benefits of free and fair trade,” adding that “in all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families.” Ontario Premier Doug Ford went further, posting that “if these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar.”
The orders follow a week in which Trump repeatedly attacked Canada over smoke from Ontario wildfires blanketing the US, writing that the costs of that smoke “must of necessity be added to the TARIFFS Canada is currently paying.” He went on to watch Sunday’s World Cup final alongside Carney and told reporters afterward: “Our air has been poisoned. Have a good relationship with Mark Carney, but you know we got to stop the fires up there. If we can help them, we’ll help them. But maybe they should pay us some damages or something, or we should do some tariffs.”
