The U.S. said Monday it will be imposing an additional 50 per cent tariff on Canadian imports due to retaliatory and “discriminatory” measures Canada took in response to U.S. President Donald Trump’s tariffs.
Trump signed three executive orders, each one using a different justification for the new tariff: the provincial and territorial boycotts on American alcohol products, Canada’s retaliatory tariffs on U.S.-made vehicles and auto parts, and quotas on American dairy imports under Canada’s supply management system.
The new tariff will take effect in 30 days and will apply to goods covered by the Canada-U.S.-Mexico Agreement on free trade (CUSMA), a senior administration official told reporters on background.
“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,” the White House said in a statement on the new tariff.
Canada exports approximately $1.4 billion worth of alcoholic beverages to U.S. annually. U.S. receives roughly 90% of Canada’s total alcohol exports, with spirits.
Canada exports about $360 million worth of dairy products to the U.S. annually.
