U.S. President Donald Trump signaled an additional 50% tariff on certain products from Canada, a neighbor and closest ally.
According to the White House on the 20th (local time), President Trump signed a proclamation imposing an additional 50% tariff on certain Canadian products, saying Canada gave discriminatory treatment to U.S.-made goods.
Trump said Section 338 of the 1930 Customs Act was the basis. According to Bloomberg News, Section 338 of the Customs Act is a provision that allows the president to impose tariffs of up to 50% on countries that give discriminatory treatment in transactions with the United States. This is the first time this provision has been applied as the basis for a tariff.
The new tariff takes effect in 30 days. The White House said items such as wine, hockey sticks, and cement are covered.
The tariff is expected to heighten tensions between the United States and Canada. Canada had been the closest ally of the United States, but frictions have continued under the Trump administration.
Meanwhile, as smoke from recent Canadian wildfires blanketed the U.S. East, President Trump threatened to levy tariffs on Canadian products. A senior U.S. administration official said the move is unrelated to the wildfires.