Trump Signs 50 Percent Tariffs on Canadian Goods, Including USMCA Items

President Trump on Monday, July 20, imposed 50 percent tariffs on a wide range of Canadian goods, including products that had been shielded from U.S. duties under the United States-Mexico-Canada Agreement. The duties take effect in 30 days, according to The Print and Michigan Public Radio, giving the two governments a window to negotiate.

Trump signed three proclamations under Section 338 of the Tariff Act of 1930, a rarely used provision that allows duties on countries found to discriminate against American commerce, Floridian Press, The Print and Michigan Public Radio reported. The White House says the measures respond to Canada’s “discriminatory treatment of American products,” including cars, alcohol and dairy.

The orders cover goods such as wine and other alcoholic beverages, dairy, cement and hockey equipment, with The Print also listing automobile components, machinery, textiles, clothing and seeds. Energy products, fish and critical minerals are exempt, and The Print and Michigan Public Radio list potash among the exemptions (Floridian Press’s account says potatoes).

In a White House fact sheet described by Floridian Press, the White House laid out its case. It says Canada imposes tariffs and quotas that apply only to U.S. exporters, that Canada has effectively stopped the purchase, distribution or retailing of American liquor in all but two provinces and territories, and that its dairy system limits American cheese far more than that of other trading partners. The White House also says China and Canada are the only two countries that fought the administration’s reciprocal tariffs instead of negotiating a deal.

Prime Minister Mark Carney called the action the latest in a series of unilateral U.S. trade actions and said earlier American tariffs on Canada’s auto sector were in direct violation of the trade agreement, The Print reported. He said Canada’s countermeasures had merely matched those tariffs, according to Floridian Press. Carney said Canada had submitted detailed proposals to resolve the dispute and modernize the agreement and was ready to intensify talks in the coming weeks. He also pledged to take “any measures necessary” to support Canadian workers, farmers and businesses.

Ontario Premier Doug Ford said Canada should respond “tariff for tariff, dollar for dollar”, if the duties proceed, The Print reported, and the Canadian Chamber of Commerce called the decisions regrettable while urging both sides to make progress during the 30-day window.

The reports do not say how much U.S. trade the tariffs would cover; The Print put the affected Canadian imports at about $20 billion, a figure not confirmed by the other outlets I read. They also leave open how American importers and consumers would be affected, since a tariff is generally paid by the importing company and can be passed on in prices.

The administration’s argument is that Canada’s practices have long disadvantaged American producers and that tariffs are the leverage needed to change them. Canada’s counterargument, in Carney’s words, is that its own measures were a response to U.S. tariffs that it says violate the agreement. Both governments have said they want to keep talking, and the 30-day clock now sets the pace.