Trump imposes 50% tariffs on Canada under obscure 1930 trade law

President Donald Trump on Monday announced 50% tariffs on most Canadian goods, invoking Section 338 of the Tariff Act of 1930, a law that has never been used to impose duties Source: AP News. The tariffs are set to take effect in 30 days, with a 30-day window for negotiations Source: NPR.

What's covered

The 50% tariffs apply to a wide range of products including wine, hockey sticks, cement, dairy, and furniture, but exclude energy, potash, fish, and critical minerals Source: Al Jazeera. Goods previously protected under the US-Mexico-Canada Agreement (USMCA) will be hit, as the US did not renew the pact Source: AP News. The White House says Canada retaliated against earlier US tariffs and has discriminated against US autos, alcohol, and dairy Source: CNN.

Reactions

Canadian Prime Minister Mark Carney said he and Trump agreed to "intensify negotiations" and that Canada is ready to engage Source: The Guardian. Ontario Premier Doug Ford called Trump "nothing but a bully" and said Canada should respond "tariff for tariff" Source: CNBC. Nine Canadian premiers agreed to keep bans on US alcohol sales Source: Ground News. In the US, Sen. Ron Wyden introduced a bill to curb presidential tariff powers, though it faces long odds Source: CNBC. Trade experts warn the use of Section 338 could set a precedent for tariffs on other countries Source: CNN.