U.S. to impose new tariffs on Canadian goods

U.S. President Donald Trump announced July 20 that he intends to impose a new 50 per cent tariff on a number of Canadian goods, including the auto sector, which are set to take effect in 30 days.

Prime Minister Mark Carney criticized the move, saying it was the latest in a series of unilateral U.S. trade actions that began with the imposition of a series of tariffs that violated the Canada-United States-Mexico Agreement (CUSMA).

Carney added that Canada has simply matched U.S. tariff measures, as is its right as a sovereign country.

“More broadly, in response to these measures and threats to Canadian sovereignty, provinces, territories and Canadians from coast to coast to coast have stood together, taking the necessary actions to support our economy and defend our workers, farmers, businesses and families,” Carney said in a statement. “Recognizing that the U.S. has been transforming all of its trade relationships, including those covered under CUSMA, over the past 18 months, Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernize CUSMA. We stand ready to intensify those discussions in the coming weeks.”

A statement on the White House website states: “Over the past year and a half, only two countries have chosen to retaliate against President Trump’s tariffs rather than negotiate a deal with the United States: the People’s Republic of China and Canada.”

It also says that Canada imposes tariffs and quotas on cars imported to Canada from the U.S., but not on imports from other countries, adding that Canada administers these quotas in a way that compels U.S. auto companies to invest in production in Canada instead of the United States.

This new round of tariffs includes products such as cars, alcohol and dairy and applies to all covered goods regardless of whether they originate under CUSMA. Tariffs will not apply to energy, potash, fish, critical minerals and products subject to tariffs under Section 232, such as steel, aluminum and copper.

Carney says the trade dispute between the U.S. and Canada raises costs for families, especially for those south of the border.

“Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of our citizens,” he said. “In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses and families.”