U.S. Slaps 50% Tariffs on Many Canada Imports
The Section 338 duties apply to a wide variety of products 鈥 even if they qualify for duty-free treatment under the United States-Mexico-Canada Agreement.
President Donald Trump on Monday issued several proclamations to impose an additional 50% tariff, starting Aug. 19, on many key imports from Canada, regardless of whether the goods originated through the United States-Mexico-Canada Agreement.
The tariffs apply to a wide variety of products, ranging from raw agricultural and natural materials to chemicals, textiles, consumer goods, wood products, paper, machinery and tools, per 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 U.S.-Mexico-Canada Agreement, per released 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鈥檚 trade practices in various key sectors discriminated against the U.S. The findings were detailed in three separate proclamations, on tariffs tied to , and imports from the country.
For example, the White House said Canada imposed duties and quotas on cars imported from the U.S. but not on vehicles from other countries. The White House also pointed out that Canada administers quotas that compel U.S. auto companies to invest in production there, rather than the U.S. In addition, the country has maintained a 25% tariff on U.S. motor vehicles that do not qualify for preferential duty-free treatment under the USMCA.
Other actions by Canada justifying the latest tariffs include most of the country鈥檚 provinces and territories halting the purchase, distribution or retailing of U.S. alcoholic beverages while not imposing similar restrictions on other countries, per the fact sheet.
Also, Canada has established tariff-rate quotas on U.S. cheese more restrictive than those imposed on imports from the European Union, despite Canada having trade agreements with the U.S. and the EU, according to the fact sheet.
鈥淭he United States, U.S. businesses and workers, and U.S. commerce suffer from Canada鈥檚 discriminatory, unequal, and unreasonable tariff scheme,鈥 Trump said in the motor vehicle proclamation.
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