U.S. President Donald Trump speaks to reporters after landing at a military base in Maryland on Sunday.Andrew Harnik/Getty Images
U.S. President Donald Trump is escalating his trade war against Canada, imposing 50-per-cent tariffs on a range of goods to hit back at Ottawa for retaliating against Mr. Trump’s previous tariffs.
In three proclamations signed Monday, Mr. Trump invoked Section 338 of the Tariff Act of 1930 to impose tariffs on wine, hockey sticks, cement and a wide variety of other goods. The tariffs take effect on Aug. 19 and will not include an exemption for goods trading under the U.S.-Mexico-Canada Agreement.
“President Trump is offsetting the burden and disadvantage on U.S. commerce from Canada’s discriminatory treatment of U.S. commerce and is leveling the playing field for crucial American exports,” an announcement from the White House said.
The tariffs will not apply to oil, gas, potash, fish or critical minerals, even though oil and gas is the main source of the U.S.’s goods trade deficit with Canada.
Trump threatens new tariffs on Canada over wildfire smoke
Mr. Trump last year imposed hefty tariffs on steel, aluminum and autos, which disproportionately hit Canada and Mexico because of the three North American countries’ integrated economies. Canada and Mexico have also been subject to other tariffs on goods traded outside the USMCA.
Unlike most countries, Canada has retaliated against Mr. Trump’s tariffs. Of particular irritation to the Trump administration have been the provinces, including Ontario, which removed U.S. liquor from store shelves. “All but two Canadian provinces and territories have halted the purchase, distribution, or retailing of U.S. alcoholic beverages,” the statement said.
In the White House statement, the Trump administration also complained that Canadian imports of U.S. autos has decreased since Canada retaliated against the U.S. for imposing auto tariffs.
Mr. Trump’s latest salvo also comes days after he complained about smoke from Canadian forest fires wafting into the U.S., which he said he raised with Prime Minister Mark Carney at Sunday’s World Cup final in New Jersey.
Mr. Carney tried last year to negotiate down Mr. Trump’s tariffs, but Mr. Trump abruptly ended talks in October after Ontario aired an anti-tariff ad in the U.S. The two sides have begun talking again this spring but there have been few signs of progress.
Earlier this month, the U.S. opted not to renew the USMCA, triggering a period of annual reviews set to last a decade. The U.S. has started talks with Mexico to review the deal but has so far not negotiated with Canada.