Donald Trump just dusted off a 1930s trade law to go after Canada, and it could change everything. The President targeted a wide range of Canadian goods with heavy new tariffs after accusing Ottawa of playing favorites.
The White House invoked a rarely used trade provision after accusing Canada of discrimination
President Donald Trump ordered new 50 percent tariffs on a range of Canadian goods on Monday, according to Al Jazeera. The White House accused Ottawa of “discriminatory treatment” against American alcohol, automobile, and dairy products. The duties will take effect in 30 days and cover items including wine, hockey sticks, and cement.
Trump invoked Section 338 of the Tariff Act of 1930 to authorize the new duties. The Supreme Court struck down many of his earlier tariffs this year, making this legal pathway largely untested. The latest tariffs will notably hit products covered under the US-Mexico-Canada free trade agreement (USMCA). Energy, potash, and goods already subject to sector-specific tariffs remain exempt from the new measures.
Canadian Prime Minister Mark Carney responded by calling the tariffs a “direct violation” of the USMCA. He added that Canada was “ready to intensify… discussions” to resolve trade disputes with the United States. The announcement quickly raised concerns of escalation among businesses on both sides of the border.
The White House stated that Canada was one of only two countries to retaliate against Trump’s tariffs last year. China was the other nation identified in that category. Most Canadian provinces have also stopped purchasing American alcohol from their shelves. The boycott came after Trump’s repeated tariff threats and calls for annexing Canada as America’s “51st state.”
US Trade Representative Jamieson Greer accused Canada of giving better dairy market access to the European Union. He also claimed Ottawa placed a cap on vehicle exports from companies reshoring to the United States. Greer stated the tariff announcement aims to “hold Canada accountable for its retaliation and discrimination.” Trump’s previous trade orders had generally exempted goods entering under the North American free trade pact.
Originally reported by Vritti Johar on Mandatory.com.
