Bangkok: The United States has announced a 50% customs tariff on Canadian goods, intensifying the ongoing trade conflict between the two neighboring nations. President Donald Trump declared the implementation of this tariff as a countermeasure to what the U.S. perceives as unfair treatment of its domestically produced automobiles, alcoholic beverages, and dairy products by Canada.
According to Thai News Agency, the tariffs will encompass a wide array of goods, including wine, cement, and ice hockey equipment. Trump invoked Section 338 of the 1930 Tariff Act, which allows the president to impose tariffs of up to 50% on trading partners deemed discriminatory towards U.S. goods. This is the first time this law has been utilized in nearly a century.
The new tariffs are set to take effect within the next 30 days and will cover products such as dairy, swimming pools, furniture, fishing rods, seeds, clothing, and wigs. The U.S. Trade Representative's office has estimated that the tariffs will impact approximately $20 billion worth of Canadian imports, accounting for about 5.2% of the projected $382 billion in U.S. imports from Canada in 2025.
U.S. Trade Representative Jamieson Greer emphasized in a press release that the U.S. remains committed to pursuing equitable trade agreements with its partners. However, he noted that Canada has chosen a different path by continuing to retaliate against the U.S.'s efforts to rebalance trade and safeguard domestic industries crucial to national security.
In response, Canadian Prime Minister Mark Carney issued a statement revealing that Canada had proposed a comprehensive solution to the trade dispute with Washington. Carney criticized Trump's previous tariffs as violations of the North American Trade Agreement and highlighted that the ongoing trade conflict has increased living costs, especially in the United States. He affirmed Canada's readiness for intensive negotiations to resolve the issues for the mutual benefit of both countries.
The Trump administration has consistently voiced dissatisfaction with retaliatory measures from Canada and China since Trump resumed imposing tariffs last year. Additionally, Greer has excluded Canada from ongoing negotiations with Mexico about amendments to the U.S.-Mexico-Canada trade agreement, with plans to engage in bilateral discussions in Mexico City this week.
In a separate meeting at the World Cup final in New Jersey last Sunday, Trump urged Carney to address the wildfires causing smoke to spread across the United States. Last week, Trump threatened to add the environmental damage from this pollution to the existing tariffs on Canadian goods.