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President Donald Trump‘s new 50% tariffs on Canadian goods drew criticism on Tuesday, with Gov. Gavin Newsom (D-Calif.) warning the move would raise costs for Americans, while economist Justin Wolfers said the tariffs could weaken confidence in future U.S. trade agreements.
Americans Could Face Higher Costs
Newsom accused Trump of imposing higher costs on Americans over Canada’s handling of its forests, saying on X, “Donald Trump just imposed a 50% tariff to increase YOUR COSTS because he felt that Canada didn’t do enough to rake their forests.”
“How many tantrums from this failed president do Americans have to suffer through?” Newsom added.
Wolfers, in a post on X, said tariffs are taxes paid by Americans who buy Canadian goods and warned that consumers, not Canada, would bear much of the economic burden.
Trade Deal Credibility Comes Into Question
The economist also said the tariffs send a broader message to U.S. trading partners, warning that countries could face additional duties even if they have existing trade agreements with the U.S.
“This isn’t just about Canada. It’s a warning shot to every trading partner: even if you have a deal, retaliation may bring tariffs anyway. That makes deals less credible,” Wolfers added.
Canadian Prime Minister Mark Carney on Monday called the tariffs a “direct violation” of the United States-Mexico-Canada Agreement (USMCA), saying Ottawa was prepared to “intensify” trade talks with Washington while warning the measures would raise the cost of living, particularly for U.S. families.
Tariffs Put USMCA Under Fresh Scrutiny
U.S. and Mexican negotiators opened three days of talks in Mexico City on Tuesday to rewrite the USMCA, with Canada absent from the discussions.
The negotiations mark the first formal talks since the Trump administration declined to extend the six-year-old pact on July 1, triggering a 10-year countdown toward its expiration unless the three countries agree on revisions.
The agreement underpins roughly $1.6 trillion in annual North American trade.
Canada has been largely sidelined after Trump imposed 50% tariffs on nearly $20 billion of Canadian goods, including products previously protected under the USMCA.
Wolfers added that the tariffs matter beyond Canada, warning that “the next round of the trade war is just around the corner.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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This article Gavin Newsom Says Trump's Canada Tariffs Will Raise Costs, Asks How Many 'Tantrums' Do Americans Have To Suffer Through originally appeared on Benzinga.com.
