SerpApi.Org
President Donald Trump slapped a 50% tariff on the majority of Canadian imports late Monday afternoon, claiming Canada unfairly discriminated against American autos, alcohol, and dairy products.
The decision threatens to trigger economic turmoil, raising concerns about inflation and straining relations between two countries that previously enjoyed a friendly partnership. An administration official who disclosed the news indicated that Canada was among the few nations, aside from China, that struck back against Trump's earlier tariffs and needed to face consequences.
The official requested anonymity when discussing the president's actions and revealed that Trump signed three proclamations to implement the tariffs under Section 338 of the 1930 Trade Act. Multiple Democratic lawmakers last year pushed to abolish the section, warning that Trump could leverage it to undermine the economy.
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Multiple Democratic lawmakers last year pushed to abolish the section, warning that Trump could leverage it to undermine the economy. The 50% tariffs would exempt energy products, potash, fish, and critical minerals, but would encompass goods that had previously been shielded from import taxes under the United States-Mexico-Canada Agreement, or USMCA.
That 2020 trade agreement recently lapsed and sparked fresh negotiations that could extend through 2036. A White House official revealed that Trump had directed his team to explore imposing additional tariffs on Canada due to wildfires that have compromised air quality across the U.S.
President Trump has disclosed he confronted Canadian Prime Minister Mark Carney at Sunday's World Cup Final regarding smoke billowing into America from wildfires, telling him: "Our air's being poisoned."
Trump recounted their exchange at Joint Base Andrews upon his return to Washington from the FIFA World Cup final in New Jersey. Both Trump and Carney attended, along with Mexican President Claudia Sheinbaum, collectively representing the three host countries.
"It went good, but I told him, you got to stop these fires from coming in and poisoning our air," the president said of his interaction with Carney.
"Our air has been poisoned. I have a good relationship with Mark Carney, but you know, we got to stop the fires up there," he added. "If we can help them, we'll help them. But maybe they should pay us some damages or something, or we should do some tariffs. But it was terrible. I mean, you had businesses closing."
Trump warned Canada about increased tariffs on Friday, according to the Independent. Taking to Truth Social, he wrote: "We are holding Canada responsible for the fact that they are not properly maintaining their Forests, and Brush therein, and the United States is being unnecessarily invaded by filthy, polluted, and unhealthy air, the quality of which is dangerous, and totally unacceptable.
"Canada has refused to engage in basic Forest Management and Debris Removal. This is Willful Negligence, and becoming a yearly occurrence, costing the United States Billions of Dollars, which cost of this pollution must of necessity be added to the TARIFFS Canada is currently paying."
