As the global economy reels from the war he started with Iran in February, Donald Trump stepped up his trade war with Canada on Monday, signing three proclamations to impose 50% tariffs on most imported Canadian goods, citing a provision of a 1930 trade law.
Trump claimed that the tariffs on one of the most important US trade partners, which risk higher inflation in the US, were justified by what he claimed was Canada’s unfair discrimination against American cars, alcohol and dairy products.
A Trump administration official told the Associated Press that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable.
Several Democratic lawmakers last year proposed repealing the section of the 1930 Tariff Act used by Trump, fearing that he could use it to destabilize the economy after many of his tariffs were ruled illegal by the US supreme court.
The new 50% tariffs exclude energy products, fish and critical minerals, but include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That 2020 trade pact recently expired and triggered a new set of negotiations that could run until 2036.
There could be more tariffs to come. The official who briefed reporters on the proclamations said that Trump had also asked his aides look into additional tariffs on Canada because its wildfires hurt air quality in the US.
At the World Cup final on Sunday, Trump congratulated players on stage with Canada’s prime minister Mark Carney, a tournament co-host, who has pushed back on Trump’s tariffs and threats to annex Canada.
Trump claims in the proclamations that Canada discriminates against American autos, alcohol and cheese relative to other nations, but his argument rests in large part on retaliatory actions taken by Canada after he imposed a series of tariffs on Canada last year.
Trump’s proclamation on alcohol notes that Canadian provinces and territories halted the purchase and retailing of American alcoholic beverages last year, without noting that action was in response to Trump’s tariffs and taunts about making Canada the 51st US state.
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The new 50% tariffs exclude energy products, fish and critical minerals, but include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. Meanwhile a Trump administration official told the Associated Press that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable.
In other words a Trump administration official told the Associated Press that Canada was one of the only nations other than China that retaliated against Trump’s previous tariffs and must be held accountable. Curious to see how this develops.
The bigger issue here is the new 50% tariffs exclude energy products, fish and critical minerals, but include goods that had previously been protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That changes the calculation.