Trump Signs Executive Order Imposing 50% Tariffs on Multiple Canadian Goods, Escalating US-Canada Trade War

U.S. President Donald Trump signed three executive orders late Monday night, citing Canada's "discriminatory" trade measures against American automobiles, alcoholic beverages, and dairy products, announcing new 50% tariffs on multiple Canadian goods. The new measures will take effect in 30 days and no longer apply the tariff exemptions under the United States-Mexico-Canada Agreement (USMCA), symbolizing a further escalation of U.S.-Canada trade tensions.

White House officials stated that Trump invoked Section 338 of the Tariff Act of 1930, issuing notices targeting three Canadian policies allegedly discriminating against American products. This law authorizes the president to impose up to a 50% tariff on countries deemed discriminatory toward U.S. goods—but it has rarely been used in decades.

Officials emphasized that the scope of the new tariffs is broad, affecting everything from wine to hockey sticks and cement, and applying to "all covered goods," regardless of whether they were previously protected under USMCA exemptions.

The White House said approximately $20 billion worth of Canadian goods would be affected, including furniture, paper products, plywood, machinery, and electrical equipment. However, energy products, potash, fish, critical minerals, as well as automobiles, steel, and aluminum—already subject to other industry-specific tariffs—are excluded from this measure.

U.S. Trade Representative Jamieson Greer stated the new measures are intended to counteract Canada’s "retaliatory and discriminatory" actions against American exports.

A senior White House official noted that Canada is one of the few nations that chose not to negotiate but instead responded to U.S. tariffs with retaliation, adding, "Canada must take responsibility for this ongoing pattern of discrimination."

In response to the latest U.S. move, Canadian Prime Minister Mark Carney issued a statement criticizing the new tariffs as a series of actions that directly violate USMCA.

Carney said: "This trade dispute has already increased household living costs, especially in the United States." He added, "Canada stands ready to engage actively with the U.S. to resolve outstanding issues, in the interest of both nations’ people."

Carney emphasized Canada’s belief in "the benefits of free and fair trade" and affirmed that Canada will continue supporting domestic workers, farmers, businesses, and families. He also confirmed Canada’s readiness to pursue more intensive negotiations with the U.S. on updating USMCA.

Ontario Premier Doug Ford advocated for a strong countermeasure. On social platform X, he stated: "If these tariffs are implemented, Canada should respond with tariffs in kind—dollar for dollar."

The Canadian Chamber of Commerce expressed regret over the U.S. measures but hopes both sides seize the 30-day window before implementation to achieve tangible progress.

The Canadian Trucking Alliance warned that the new tariffs would raise logistics costs, cause border congestion, and harm consumers on both sides. CEO Stephen Laskowski stated: "You cannot disrupt the world’s most integrated supply chains without causing massive collateral damage."

This move marks another wave of pressure from the Trump administration on Canada. Last year, both sides imposed retaliatory tariffs on each other. Earlier this month, the U.S. announced it would not renew USMCA but instead initiate an annual review process, casting uncertainty over the future of this trilateral free trade agreement.

Trump had previously blamed Canada’s wildfires for degrading air quality in the U.S., threatening to factor related damages into tariffs on Canadian goods. However, White House officials stressed that this 50% tariff is unrelated to the wildfire issue, though they revealed Trump has instructed his team to explore other potential responses.

Analysts note that Section 338 of the Tariff Act of 1930 has been scarcely invoked since 1949. Trump’s use of this provision is seen as a significant shift in U.S. trade policy. With the U.S. Supreme Court ruling earlier this year that Trump cannot impose sweeping tariffs under the International Emergency Economic Powers Act (IEEPA), the White House has increasingly turned to alternative legal bases to advance its tariff agenda.

Scott Lincicome, Vice President at the U.S.-based think tank Cato Institute, told NPR: "We have crossed the Rubicon." He described invoking Section 338 as "Trump’s nuclear option for tariffs."

Capital Economics estimates that the new measures will affect only about 5% of Canadian exports to the U.S., accounting for roughly 0.6% of total U.S. imports—limited in overall trade impact. However, if courts uphold Trump’s invocation of Section 338, it could become a new tool for pressuring other trading partners, introducing greater uncertainty into global trade.

Source: rfi

Original article: toutiao.com/article/1871371308883975/

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