Trump Imposes 50% Tariffs on Canadian Goods Under 1930 Trade Law
7 verified6 unconfirmed
President Donald Trump on Monday announced 50% tariffs on a wide range of Canadian goods, invoking a long-dormant provision of the Tariff Act of 1930. The new import taxes are set to take effect in 30 days, creating a window for negotiations between the two countries. The tariffs apply to products that had previously been covered under the United States-Mexico-Canada Agreement (USMCA), which expired on July 1 and was not renewed by the United States. The White House cited Canadian restrictions on American autos, alcohol, and dairy products as justification for the move. Canadian Prime Minister Mark Carney said his government is prepared to negotiate but also defended the benefits of free and fair trade. The use of Section 338 of the 1930 Tariff Act comes after the Supreme Court earlier this year limited the president’s ability to impose tariffs by declaring an economic emergency. Both countries now face a 30-day period before the higher duties go into effect.
What’s verified
President Trump imposed 50% tariffs on most Canadian goods, set to take effect in 30 days.
The tariffs were imposed under Section 338 of the Tariff Act of 1930.
The tariffs apply to goods that were previously covered by the USMCA trade agreement, which expired on July 1.
The White House cited Canadian restrictions on American autos, alcohol, and dairy products.
Canadian Prime Minister Mark Carney stated his government believes in free and fair trade and is prepared to negotiate.
The Supreme Court had previously ruled that Trump lacked the legal authority to impose tariffs by declaring an economic emergency.
All but two Canadian provinces have stopped purchasing and selling American alcoholic beverages in retaliation for earlier U.S. tariffs.
Not yet confirmed
Only one source reported that Trump requested aides look into additional tariffs on Canada over Canadian wildfires affecting U.S. air quality.
Only one source reported that the tariffs specifically cover items including whiskey, cheese, down jackets, and hockey sticks.
Only one source reported that the tariffs exclude energy products, potash, fish, and critical minerals.
Only one source reported that Ontario Premier Doug Ford called for Canada to respond “tariff for tariff, dollar for dollar.”
Only one source reported that the Cato Institute’s Scott Lincicome called the invocation of Section 338 “the nuclear option for Trump tariffs.”
It is unclear whether the 30-day delay signals a negotiating tactic or a firm policy, as Trump has not always followed through on announced tariff increases.
Key figures
President Donald Trump
Prime Minister Mark Carney (Canada)
Ontario Premier Doug Ford
Candace Laing, CEO of the Canadian Chamber of Commerce
Chris Swonger, CEO of the Distilled Spirits Council of the United States
Scott Lincicome, vice president of general economics at the Cato Institute
Rep. Suzan DelBene, D-Wash., chair of the Democratic Congressional Campaign Committee
