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US President Donald Trump is trying to impose a 50 percent tariff on a variety of Canadian exports, fueling his trade war with his northern neighbor.
The 50 percent rate is being imposed as a result of what a senior administration official described as Canada’s retaliation against US trade policy and its discrimination against US autos, milk and alcohol.
“This is not a trade war with Canada, these are defense measures,” the official said in a conference call with reporters Monday afternoon.
The new standard, set out in three presidential proclamations, is expected to take effect in 30 days.
Although energy, potash, precious minerals and fish will be exempted, some products that have so far been allowed to enter the US duty-free under the terms of the Canada-United States-Mexico Agreement (CUSMA) will be hit.
The 50 percent tariff is five times higher than the current duty imposed on the small portion of Canadian exports to the US that do not comply with CUSMA rules of origin.
‘Wine in hockey sticks to cement’
The new standard will apply to a wide range of Canadian imports, “from wine to hockey sticks to cement,” the official said, adding that the White House will publish a full list of affected products.
“By doing this, President Trump is leveling the playing field for vital American exports,” the official said.
US President Donald Trump is imposing a 50 percent tariff on many Canadian products, in what the White House calls Canada’s ‘discrimination’ against American alcohol, cars and dairy products. Power and Politics have reaction and analysis.
These charges are imposed under Section 338 of the US Tariff Act, which gives the president the power to impose tariffs of up to 50 percent on imports from countries deemed to discriminate against US industries.
Although section 338 has been “on the books for a long time,” the official said it has never been used to do this, meaning the move could face a legal challenge.
“In cases of retaliation like these, it is completely in line with what the law allows,” said the official. “It gives the president this authority in cases where the country discriminates against the United States compared to the treatment it gives to a third country.”
“President Trump is taking action to hold Canada accountable for its continued discrimination and unfair and unfair treatment of American trade that has burdened hard-working Americans,” said a statement from the White House.
The sharp increase in tariffs comes amid stalled negotiations between Canada and the US over CUSMA amendments.
Meanwhile, US Trade Representative Jamieson Greer will travel to Mexico this week for talks.
Trump has taken “decisive action to hold Canada accountable for retaliation and discrimination,” Greer said in a statement released Monday.
Auto parts, vehicles not on the cost list
The White House has published three lists of Canadian products that will face a new 50 percent tariff.
The president’s announcement of each list says the tariffs are designed to “eliminate Canada’s discrimination against United States trade” in the auto, dairy and alcohol sectors.
Canadian dairy products include milk, cream, other dairy products and molasses.
On the alcohol sector list, Canadian products that will be subject to the 50 percent tariff include beer, wine, cider, whiskey and other alcoholic beverages, but also “ice-hockey and field-hockey articles and equipment (except balls and skates).”
The automotive industry list is very long, with over 350 items on 18 pages. It says the new 50 per cent tariffs will apply to products such as Canadian honey, sculptures, fishing rods, dog leashes and down jackets, but not to any cars or car parts.
