American president Donald Trump signed an executive order on Monday imposing an additional 50% in customs tariffs on a range of Canadian products, citing “discriminatory treatment by Canada against American goods,” as well as bilateral disputes in the automotive, dairy, and alcoholic beverages sectors.
The new tariffs, set to take effect in one month, will apply to a wide variety of goods — ranging from wines and hockey sticks to cement. Notably, they also target certain products imported under the country’s free trade agreement with Canada and Mexico.
The American government claims the tariffs cover Canadian imports worth $20 billion.
CNN notes that Trump invoked Section 338 of the Tariff Act of 1930, a law that allows the president to impose tariffs of up to 50% without Congressional approval when a country is deemed to be discriminating against American products. However, the law has never previously been applied in this manner.
Last week, Trump threatened to impose higher tariffs on Canadian goods as punishment for wildfire smoke drifting across the border into large parts of the United States. However, a senior administration official told reporters on Monday that the new tariffs are unrelated to that issue, stating that “the president has other options regarding that matter.”
