The United States is slapping 50% tariffs on Canadian products from wine and hockey sticks to cement, in response to Canada’s retaliatory duties on American cars, alcohol, and cheese as part of the two countries’ trade war.
President Donald Trump signed three executive orders on Monday evening to impose the levies on Canada using Section 338 of the Tariff Act, which permits the U.S. to introduce “new or additional duties” of up to 50% on imports from foreign countries that discriminate against or unreasonably burden U.S. commerce.
“Canada has to be held accountable for this continued discrimination,” a senior Trump administration official told reporters on Monday. “U.S. exports have been harmed. They have lost market share or have not been able to obtain the market share they otherwise should have had under nondiscriminatory situations.”
Although the senior administration official denied that the two countries were engaged in a trade “war,” the source underscored that only two countries have retaliated against tariffs Trump has implemented since his return to power in January 2021: China and Canada.
The official also told reporters that the new tariffs, which will go into effect in 30 days, will remain in place regardless of whether the product is compliant with the U.S.-Mexico-Canada trade agreement, a deal that is currently under review, contending that Canada did not consider USMCA rules when it retaliated against the U.S.
“The United States, of course, remains open to discussions with our Canadian trading partners, especially in the context of the USMCA review,” the source said. “But at the same time, we will not tolerate discrimination against U.S. goods.”
However, the tariffs will not cover energy, potash, and products subject to duties under Section 232 of the Trade Expansion Act, plus certain other goods, including fish and critical minerals.
“We are trying to be, again, very tailored to the volume of trade and the harm that affects U.S. trade under these discriminatory rules,” the official said. “The products we selected and the volume, it’s all designed to offset the burden, which is what the statute requires.”
The official went on to confirm that Trump did not preview the tariffs with Canadian Prime Minister Mark Carney when he and his counterpart met on the sidelines of the FIFA World Cup final on Sunday as co-hosts of the monthlong tournament.
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The official added Congress and Canada were being briefed Monday evening, and that these tariffs are not related to Trump’s call for trade action against the U.S.’s northern neighbor in reaction to its management of its wildfires.
“These are not the so-called wildfire tariffs,” the source said. “The president has asked for options on that and options are being shared with him.”