The United States announced a new 50 percent tariff on a wide range of Canadian imports. The action is a direct response to what the administration calls discriminatory trade practices by Canada.
The tariff is scheduled to take effect 30 days after President Donald Trump signs the executive order. It will apply to goods covered by the existing Canada-U.S.-Mexico Agreement.
A senior official stated the move is in response to provincial boycotts of American alcohol and Canada's limits on U.S. dairy imports. Reciprocal tariffs on U.S. vehicles were also cited.
The tariff will be imposed under Section 338 of the U.S. Tariff Act of 1930. Energy products, critical minerals, potash, and goods already under other tariffs like steel and aluminum are exempt.