Trump to impose additional 50% tariff on some Canadian goods

US President Donald Trump on July 20 issued new 50% tariffs on a variety of Canadian imports in response to Ottawa's trading policies.

Trump signed three new proclamations on the same day to impose the additional tariffs on certain products from Canada to offset what the administration alleges is "discriminatory" or unfair treatment by Canada against US automotive, alcoholic beverages and dairy industries.

Trump's proclamation lists several exemptions, including "certain other goods, such as fish or critical minerals." Metals, oil, natural gas and electric power were not included in an annex to the proclamation that listed newly tariffed goods.

Steel, aluminum and semi-finished copper imports that are already subject to the 50% tariff imposed under Section 232 of the Trade Expansion Act of 1962 will not face further tariffs under Trump's July 20 orders.

This move is the latest in a series underscoring tensions between the US and one of its largest trading partners, following the US decision to punt on a renewal of the United States-Mexico-Canada Agreement, which was up for renegotiation earlier this month.

The new tariff is imposed under Section 338 of the Tariff Act of 1930 and applies to a wide range of products, including distilled spirits, cement, densified wood, animal byproducts, vegetable saps and agricultural machinery.

The tariff also applies to goods regardless of whether they originate under the United States-Mexico-Canada Agreement.

The additional tariffs on Canada are set to take effect Aug. 19.

"While the administration continues to secure fair and reciprocal trade deals with our trading partners, Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect US industry in national security-sensitive sectors," US Trade Representative Jamieson Greer said in a statement July 20.