Trump will impose 50% tariffs on Canadian hockey sticks, milk, alcohol and other goods.
President Trump is imposing 50% tariffs on a range of Canadian goods, from hockey equipment to alcohol, escalating a trade dispute between the two countries.
The new tariffs – set out in a series of declarations signed by Mr Trump on Monday – will take effect on August 19. The White House accused Canada of “unreasonable, inequitable, and discriminatory actions” by imposing tariffs or import restrictions on certain American goods, some of which began after Mr Trump’s first round of tariffs last year on Canada.
In retaliation for last year’s Canadian tariffs on certain US auto imports, the Trump administration slapped tariffs on some Canadian electronics, hockey equipment, honey, flower buds, down feathers, plywood, cowhide, jewelry and other goods. The White House also imposed tariffs on Canadian beer, wine, spirits and milk, due to a US boycott of Canadian alcohol due to last year’s tariffs and Canada’s long-standing share of dairy exports.
Goods that cross the border under the US-Mexico-Canada Agreement, or USMCA – a trade agreement signed during Mr.
The official said the new tariffs do not mean the US is entering a trade war with Canada, and the Trump administration remains open to negotiations. But the official said the US needs to respond to what the White House considers discriminatory trade practices, naming Canada and China as the only two countries that have retaliated against Mr.
“While the Administration continues to ensure fair and equitable trade agreements with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in critical areas of national security,” said US Trade Representative Jamieson Greer in a statement.
These new tariffs were issued under Section 338 of the Tariff Act of 1930, which gives the president the power to impose duties of up to 50% on any country that “discriminates” against US trade. A senior administration official said Section 338 has never been used in this way before, but the administration is confident it has the power to set prices. The authority of Mr. Trump’s introduction of tariffs was blocked earlier this year by the Supreme Court, which ruled that he could not use a separate emergency power law to impose tariffs on imports.
The Distilled Spirits Council of the United States – a trade group that represents American producers of spirits such as whiskey and vodka – said in a statement on Monday that the 50% tax “increases trade tensions and raises the risk of retaliation at a time when many US hospitality businesses continue to face financial difficulties.”
“For nearly a year and a half, American spirits have been pulled from store shelves across Canada as a result of a broader trade dispute unrelated to our industry, and we appreciate the Department of Administration’s recognition of the significant damage these restrictions have caused to US distillers,” said CEO and President Chris Swonger. “However, we were hoping that this issue could be resolved without further escalation.”
Candace Laing, president and CEO of the Canadian Chamber of Commerce, called the new tariffs “regrettable increases” but urged both countries to use the 30 days before they take effect “to make meaningful progress in moving forward with formal negotiations.”
CBS News has reached out to Canadian Prime Minister Mark Carney’s office for comment.
Canada is the US’s second-largest trading partner, behind Mexico, with more than $300 billion in goods flowing across the US-Canada border in the first five months of this year, federal data show.
The two countries have had a strained trade relationship since the early weeks of Mr. Trump’s second term. Trump, when he threatened to impose heavy tariffs on US neighbors to the north and south for what he considered an insufficient measure to prevent drugs and immigrants from crossing the border. Canada responded by removing its own tariffs on American goods, and other states issued their own retaliatory measures, such as pulling American liquor off the shelves.
The Trump administration later launched trade talks with Canada, and rolled back some of its tough tariffs by exempting goods that comply with the USMCA, which covers most trade across the US-Canada border. But tensions remain high, Mr Trump from time to time threatening to raise tariffs and choosing not to renew the USMCA that expires in 2036. The two countries also clashed over NATO and Mr. Trump about taking over Canada.
At the end of last week, Mr. Trump threatened higher prices In Canada because of the wildfires that blanketed the eastern and midwestern US with smoke, they said the country was “infested with dirty, dirty, and unhealthy air.” Canada has defended its management of fires.
A senior administration official told reporters that Monday’s tax “is not the so-called wildfire cost,” but advisers shared with the president.
