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President Donald Trump issued several proclamations on Monday to impose an additional 50 percent tariff, starting Aug. 19, on many key Canadian imports, regardless of whether the goods come from the U.S.-Mexico-Canada agreement.
The tariffs apply to a wide variety of products, ranging from agricultural and natural raw materials to chemicals, textiles, consumer goods, wood products, paper, machinery and tools, according to annexes provided with each proclamation and reviewed by Supply Chain Dive.
The duties apply to all covered goods, regardless of whether they originate under the US-Mexico-Canada Agreement, for an information sheet published by the White House. However, the tariffs will not apply to energy, potash, products subject to Section 232 tariffs and certain other goods, such as fish and critical minerals.
Trump imposed the maximum tariff under Section 338 of the Tariff Act of 1930 after formally finding that Canada’s trade practices in several key sectors discriminated against the US. The conclusions were detailed in three separate proclamations, on the tariffs linked to alcohol, dairy i motor vehicle country’s imports.
For example, the White House said Canada imposed duties and quotas on cars imported from the US but not on vehicles from other countries. The White House also noted that Canada administers quotas that force US auto companies to invest in production there, rather than in the US. In addition, the country has maintained a 25% tariff on US motor vehicles that do not qualify for preferential duty-free treatment under the USMCA.
Other Canadian actions justifying the latest tariffs include most of the country’s provinces and territories curbing the purchase, distribution or retail sale of US alcoholic beverages without imposing similar restrictions on other countries, according to the fact sheet.
In addition, Canada has set tariff quotas on US cheese that are more restrictive than those imposed on imports from the European Union, despite Canada having trade agreements with the US and the EU, according to the fact sheet.
“The United States, American businesses and workers, and American commerce suffer from Canada’s discriminatory, inequitable and unreasonable tariff scheme,” Trump said in the motor vehicle proclamation.
The Trump administration has continued to use trade probes from various trade authorities to slap tariffs on numerous sectors and countries after the Supreme Court struck down global tariffs it imposed under the International Emergency Economic Powers Act.
In February, Trump signed a proclamation to impose a surcharge of 10%. on imports entering the US under Section 122 of the Trade Act of 1974.
On July 22, the United States is scheduled to begin charging a 25% tariff. many imports from Brazilwhile exempting a wide range of fruits and vegetables, such as pineapple, banana and avocado, as well as beef and certain seafood. The US justified these tariffs under Sections 301 and 304 of the Trade Act of 1974.
The new tariffs are also the latest salvo in a year-long trade war with Canada, which has seen the two countries exchange several tariff threats and impose sector-specific duties over the past year as they theoretically worked to revise the terms of the USMCA, which until now had exempted many goods from additional duties.
Canadian Prime Minister Mark Carney said Monday the new tariffs were “a direct violation” of the USMCA, but pledged to step up discussions related to modernizing the pact and resolving the ongoing trade dispute with the US.
“This trade dispute has increased costs for families, especially in the United States,” Carney said in a statement. “Canada is ready to engage intensively to address outstanding issues with the US for the mutual benefit of our citizens.”
Editor’s note: This story has been updated to include a statement from Canadian Prime Minister Mark Carney.
