Trump threatens 50 percent tariffs on Canadian goods including dairy, hockey sticks
U.S. President Donald Trump signed orders using Depression-era trade law to impose tariffs on wide range of Canadian products, with duties set to take effect August 19.
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U.S. President Donald Trump is ramping up pressure on Canada by threatening 50 percent tariffs on a wide array of Canadian goods—ranging from hockey sticks and wine to cement and dairy—using an obscure Depression-era legal tool.
Trump signed the orders Monday invoking Section 338 of the Tariff Act of 1930. Unlike most Trump tariffs, these duties would carry no exemptions for goods compliant under the Canada-U.S.-Mexico Agreement (CUSMA). The tariffs are set to take effect August 19.
United States Trade Representative Jamieson Greer cited the measure as a response to provincial bans on U.S. liquor, Canada's supply-managed dairy system, and quotas on certain U.S. vehicles. Ryan Majerus, a Washington-based trade lawyer, said the announcement appears designed to gain leverage in ongoing CUSMA renegotiations. "Because Section 338 is an untested authority from the Great Depression era, we do not have a road map for how this will play out," Majerus said.
Prime Minister Mark Carney said Tuesday he spoke with Trump and they agreed to intensify trade talks in the coming weeks. The Trump administration earlier said it would not renew CUSMA, triggering rolling annual reviews of the continental trade agreement that replaced NAFTA.
By the numbers
What tariff rate did Trump threaten on Canadian goods?
50 percent tariffs on a wide array of Canadian products including hockey sticks, wine, cement, and dairy.
What legal authority did Trump use for these tariffs?
Section 338 of the Tariff Act of 1930, a Depression-era law, which unlike most Trump tariffs carries no exemptions for goods compliant under the Canada-U.S.-Mexico Agreement.
