Trump Imposes 50% Tariffs on Canadian Goods to Defend American Workers

Here we go, again.

Readers, you didn’t think the tariff fun was over, did you? The Administration has located yet another mechanism to impose tariffs on foreign countries and has pushed forward with it.

President Donald Trump, yesterday, signed three proclamations under Section 338 of the Tariff Act of 1930, imposing an additional 50% tariff on a range of Canadian goods in response to what the administration describes as Canada's discriminatory treatment of American products. Section 338 of the Tariff Act of 1930 is meant for just this, foreign discrimination.

The tariffs target imports spanning wine, hockey sticks, cement, and more. They apply to all covered goods regardless of whether they originate under the U.S.-Mexico-Canada Agreement (USMCA), and take effect 30 days after signing. Energy, potash, goods already subject to Section 232 tariffs, and certain products like fish and critical minerals are exempt.

The administration points to Canadian trade barriers on three key American exports. Canada imposes tariffs and quotas on U.S. cars not applied to other countries, and U.S. motor vehicle imports into Canada fell roughly 22% ($5.6 billion) over the past year. All but two Canadian provinces and territories have halted the purchase or sale of U.S. alcoholic beverages, contributing to an 81% ($582 million) drop in U.S. alcohol imports. And Canada maintains restrictive tariff-rate quotas on U.S. cheese that are far tighter than those it applies to comparable European imports.

According to the White House, Canada and China are the only two countries to retaliate against the President's tariffs rather than negotiate.

— The Chain Logic Team