President Donald Trump signed orders on Monday imposing 50% tariffs on a wide range of Canadian goods. The White House stated the move is a response to Canada's discriminatory treatment of American automobiles, alcohol, and dairy products. These levies are set to take effect in 30 days unless Canada removes the trade barriers cited by the administration.
The president signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act, a legal provision that has not been used before. The duties will apply to various exports, including wine, cement, and hockey sticks. However, certain key imports such as energy, fish, potash, and critical minerals will be exempt.
This move marks a major escalation in trade tensions between the North American neighbors and a ramping up of the trade war. Relations have already frayed due to the administration's tariff-heavy agenda and displeasure with the trilateral trade pact involving Mexico. Officials warn that the action could unleash a wave of economic chaos, risking higher inflation and further damaging the relationship between the two nations.