US to impose 50% tariffs on Canadian goods regardless of USMCA

The United States (US) will impose an additional 50 per cent tariff on covered Canadian goods regardless of whether they qualify under the US-Mexico-Canada Agreement (USMCA), after President Donald J Trump signed three proclamations under Section 338 of the Tariff Act of 1930. The tariffs are scheduled to take effect 30 days after signing and are intended to counter what the US describes as Canada’s discriminatory treatment of American exports.The new Section 338 measures impose separate 50 per cent tariffs on different groups of Canadian imports, covering products ranging from wine and hockey sticks to cement. However, the tariffs will not apply to energy, potash, products already subject to Section 232 tariffs, fish, critical minerals and certain other exempt goods.

The US will impose additional 50 per cent Section 338 tariffs on covered Canadian goods regardless of their USMCA status, effective 30 days after signing.
The White House said the move responds to Canada’s alleged discriminatory treatment of US exports.
Canada called the tariffs a violation of CUSMA and said it remains committed to negotiations while protecting its workers and businesses.

The White House said the action is aimed at restoring fair treatment for US exporters, alleging that Canada imposes discriminatory measures on American automobiles, alcoholic beverages and dairy products. It argued that Canada’s import quotas and tariff-rate quotas have disadvantaged US businesses and encouraged investment in Canadian production instead of the US.

President Trump said the tariffs are part of his broader America First trade policy, adding that Canada, unlike many other US trading partners, had chosen to retaliate against earlier US tariffs instead of negotiating a new agreement. The administration also reiterated that it does not intend to renew the USMCA in its current form, arguing that the pact is not sufficiently beneficial for the US.

Canadian Prime Minister Mark Carney condemned the move, describing it as the latest in a series of unilateral US trade actions that violate the Canada-United States-Mexico Agreement (CUSMA). He said Canada had only matched US measures affecting its auto sector and had submitted comprehensive proposals to modernise the trade agreement. Carney added that Canada remains ready to intensify negotiations with Washington while taking any necessary measures to protect Canadian workers, businesses, farmers and families.

Fibre2Fashion News Desk (CG)