The United States will impose an additional 50% ad valorem tariff on a wide range of Canadian products, including wine, in response to Canada's "discriminatory measures" against American automobiles and auto parts, alcoholic beverages, and dairy products.
According to reports from Reuters and The Wall Street Journal, US President Trump signed three announcements on Monday (July 20th), invoking Section 338 of the 1930 Tariff Act to impose the aforementioned tariffs. Section 338 of this act allows the United States to impose a maximum 50% tariff on imported products from specific countries.
The new tariffs will come into effect at 00:01 on August 19th (Eastern Time of the United States) and will be imposed in addition to the existing related tariffs, taxes and other charges.
According to the situation statement released by the White House, these tariffs cover wine, hockey sticks, cement, etc. They will also apply to a variety of other products, including dairy products, swimming pools, furniture, fishing rods, seeds, clothing, wigs, etc.
The White House stated that this imposition of tariffs was a response to Canada's "discriminatory treatment of American products". However, the White House also said that some industries and products, including energy, potash, fish, and key minerals, would be exempt from the new tariffs.
U.S. Trade Representative Grier said in a statement: "Although the Trump administration remains committed to reaching fair and mutually beneficial trade agreements with trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States' efforts to rebalance trade and protect industries in sensitive areas related to national security."
The office of the Prime Minister of Canada did not immediately respond to the request for comment.
On the 17th, Trump criticized Canada for its failure to prevent forest fires, which led to the "invasion" of smog into the United States. He also said that he would add this "immeasurable" pollution cost to the existing tariffs imposed on Canadian goods. On the 19th, Trump attended the World Cup final at the New Jersey Stadium in New York. Canadian Prime Minister Carney was also a guest of honor. After the World Cup final ended, Trump told reporters that he had informed Carney that Canada must do better in controlling the wildfires in Ontario and said that he and Carney had "a good relationship".
Trump's latest move has cast a shadow over the future of the USMCA (the United States-Mexico-Canada Agreement), although negotiations for a new agreement among the three countries are still ongoing.
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