July 20 (UPI) — President Donald Trump signed orders Monday to impose a new 50% tariff on many Canadian imports, saying it’s because of “discriminatory treatment” of U.S. products.
The tariffs take effect Aug. 19 and affect a wide range of goods including wine, hockey sticks, electrical equipment and concrete.
Trump cited part of the Tariff Act of 1930 that allows a U.S. president to mandate a tariff up to 50% without congressional approval if a country is believed to be discriminating against U.S. goods. However, the law has not been applied this way before, CNN reported.
The Trump administration said the tariffs cover $20 billion worth of imports. They join ongoing tariffs from 15% to 50% imposed by the United States on Canadian steel, aluminum and copper, as well as Canadian softwood lumber, BBC News reported.
Last week, Trump threatened new tariffs on Canada as punishment for the smoke from hundreds of wildfires that drifted over the border and affected some U.S. cities. However, there was no mention of the wildfires in the orders signed Monday.
The tariffs affect all the goods in each category even if they are included under the existing free trade agreement between the United States, Canada and Mexico.
The Trump administration named dairy products, U.S. motor vehicles and alcohol Monday as the three U.S. products it says Canada discriminates against.
“President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hard-working Americans,” a statement released by the White House said.
A few key Canadian imports are excluded from the new tariffs. These include energy products, potash, critical minerals, fish and some other goods.
In February, the U.S. Supreme Court struck down the international tariffs imposed by Trump under the International Emergency Economic Powers Act of 1977. Trump said at the time that he would find other ways to impose tariffs.
Ontario Premier Doug Ford said Monday that Canada should retaliate against the new tariffs.
“If these tariffs proceed, Canada should respond tariff fortariff, dollar for dollar,” Ford posted on social media.
About the Author
