U.S. President Donald Trump is threatening to impose additional 50% tariffs on a range of Canadian goods starting August 19.
In a statement, the White House said that the new duties are in response to alleged trade discrimination by Canada against U.S. products and industries.
Trump is threatening to hit three Canadian industries with the new 50% tariffs— motor vehicles, alcohol and dairy.
The White House said impacted Canadian products range “from wine to hockey sticks to cement.”
The tariffs fall under the rarely used “Section 338” of the Tariff Act of 1930. They are set to take effect in 30 days unless Canada and the U.S. can negotiate a lower duty or eliminate them.
Section 338 gives the U.S. president unilateral power to impose tariffs of up to 50% on the goods of countries found to be discriminating against America.
The obscure tariff-setting clause has gone unused for decades and there are no public records relating to Section 338 since 1949, according to legal experts.
In response to the threat of new tariffs, Canadian Prime Minister Mark Carney’s office said that the federal government in Ottawa plans to “intensify” trade negotiations with the U.S.
Political pundits were quick to say that the new tariffs are likely a negotiating tactic by the Trump administration.
Several commentators also said that the new tariffs are sure to be challenged in U.S. court and could be struck down as were most of Trump’s previous import duties.
The latest tariff threat comes after the U.S. earlier in July announced that it would not renew its continental free trade agreement with Canada and Mexico, opting instead for annual reviews of the pact.
The new tariffs also come as Trump criticizes Canada over the wildfires in northwestern Ontario, which have led to air pollution over large swaths of the U.S.
Tariffs imposed by the Trump administration were partially responsible for Canada’s economy tipping into a recession earlier this year following two consecutive quarters of economic contraction.
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