US invokes 1930 trade law to impose 50% tariffs on Canadian wine, cement and hockey sticks

The tariff announcement

President Donald Trump has signed an executive order imposing import tariffs of 50 percent on a wide array of Canadian products. The White House announced the move on Monday evening, framing it as a response to what it calls Canada's discriminatory treatment of American motor vehicles, alcohol and dairy. The new duties are set to take effect in 30 days, on 19 August.

The tariffs apply to a broad range of goods. The New York Times reports that the list spans hockey sticks, wine and cement, while NRC adds furniture and dairy products to the affected categories. Telegraaf notes that even goods entering the US under the North American free-trade agreement are not exempt. NRC confirms that the USMCA trade pact between the US, Mexico and Canada offers no shelter for Canadian products under the new order.

A dormant 1930 law revived

The legal basis for the tariffs is Article 338 of the Tariff Act of 1930. The provision allows a president to levy duties of up to 50 percent on countries deemed to discriminate against American commerce. According to NOS and Telegraaf, this specific article has never before been used to impose import duties. Democratic members of Congress proposed repealing the provision last year, fearing a president could weaponise it to disrupt the economy, Het Parool reports.

With this, President Trump compensates for the discriminatory treatment of American trade by Canada.

Retaliation and trade tensions

Canada is the second-largest trading partner of the United States. NRC reports that the two neighbours have been locked in a trade conflict since last year, when Ottawa responded to earlier US tariffs with its own 25 percent levies on American steel and motor vehicles. An anonymous US official told the Associated Press that Canada, alongside China, is one of the few countries that have imposed retaliatory measures against American import duties, and that Ottawa should be "held accountable" for that.

The president of the Canadian Chamber of Commerce called the Trump administration's steps "regrettable" but stressed that both countries have 30 days to negotiate, according to NOS. Canada's federal government had not yet issued a formal response to the announced tariffs at the time of reporting.

Prime Minister Carney responds

Canadian Prime Minister Mark Carney said his country is prepared to engage with the United States to resolve outstanding issues. He also stated that Canada will take "all necessary measures" to support Canadian businesses.

Canada is prepared to engage with the US to resolve outstanding issues and will take all necessary measures to support Canadian businesses.

Wildfire smoke and further measures

Trump has also instructed his staff to investigate whether additional import duties against Canada are possible, citing the deterioration of air quality in parts of the United States caused by Canadian wildfires. Het Parool and NOS both report that Trump views the cross-border smoke as potential grounds for further trade measures.

Broader tariff pattern

Since the start of his second term, Trump has announced import duties on dozens of countries, including members of the European Union. NOS notes that in February of this year, the US Supreme Court struck down those tariffs. The court ruled by a six-to-three majority, upholding a lower court decision that found Trump had exceeded his authority by using emergency powers to justify the levies.

Economists quoted across multiple outlets warn that the new 50 percent tariffs will push prices higher and further strain the trade relationship between the United States and Canada.