US President Donald Trump has signed an order imposing a 50% tariff on a wide range of goods imported from Canada. This was reported by Qazaqyia.kz citing BBC News.
The duties take effect on 19 August and mark a major escalation in trade tensions between the North American neighbours. The White House said the tariffs were necessary to protect American businesses.
Goods targeted range from everyday consumer items like wine and hockey sticks to industrial goods such as commercial cement. However, several key exports will be spared, such as energy, potash, critical minerals and fish.
The new duties apply to all covered goods regardless of whether the product was included under the existing free trade agreement between Canada, the US and Mexico, known as the USMCA. The US has been maintaining active tariffs ranging from 15% to 50% on Canadian steel, aluminum, and copper. Washington also charges a 35% tariff on Canadian softwood lumber, alongside a 25% tax on non-US parts in cars. Canada has its own 25% counter-tariff on selected imports of American steel, aluminium and vehicles.
Monday's duties come in the wake of President Trump's threat to impose tariffs over Canadian wildfire smoke drifting into US cities, but there is no mention of wildfires in the executive orders. Instead, the three proclamations list US trade irritants related to cars, dairy and alcohol. On cars, Trump accuses Canada of charging a tax on US motor vehicles and parts not covered under USMCA. Dairy has long been a problem for the US, specifically Canada's supply management system, which sets limits on foreign imports and charges tariffs upwards of 300%. The enduring boycott of US booze by most Canadian provinces has become a major sore point.
Canadian trade negotiators have been working on trying to secure a deal that would at least reduce some of the current US tariffs. In February, the US Supreme Court struck down international tariffs imposed by President Trump through the International Emergency Economic Powers Act of 1977. Monday's duties have been imposed under Section 338 of the 1930 Tariff Act, which covers trade discrimination rather than national emergencies.
Candance Laing, head of the Canadian Chamber of Commerce, called the move a "regrettable decision", but urged officials to make "meaningful progress" in talks before the new duties take effect in 30 days' time. The BBC has contacted the White House and the Canadian government for comment.