U.S. President Donald Trump is set to introduce a new 50 percent import tax on a variety of Canadian goods. This move deviates from the earlier tariffs during his second term by utilizing Section 338 of a law from the Great Depression era, which allows the president to impose a maximum tariff of 50 percent on imports from countries seen as discriminating against U.S. industry.
According to a senior U.S. official, this action marks the first use of Section 338 for this purpose. The White House has framed these measures as a response to Canada’s retaliation against U.S. trade policies and its alleged discrimination against three key U.S. sectors: motor vehicles, alcohol, and dairy.
The targeted goods encompass a range of products, with an estimated impact value of around $28 billion, as per a Canadian government source. While some of the goods align with the U.S. grievances in dairy and alcohol sectors, others, notably in the auto sector, appear unrelated or symbolic, such as hockey sticks.
Unlike previous tariffs imposed by Trump, these new levies will not exempt goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA). The tariffs are scheduled to take effect on August 19, covering various goods including dairy products, alcohol, and auto-related items.