The White House is at it again with tariffs, this time targeting our neighbor and closest ally, Canada. Robin Sparkles doth protest! I almost got whiplash this past week trying to keep up with the “will they, won’t they” news headlines, but I’ve put it all together for you below:
- July 20 – President Trump invoked Section 338 of the 1930 Tariff Act, a never-before-used authority, to impose 50% tariffs on ~$20B of Canadian goods, effective in 30 days. Unlike previous rounds, it applied to USMCA-compliant goods, meaning products made with enough North American content to qualify for duty-free treatment under the trade pact, like cars assembled in Ontario, Canadian lumber, and Quebec maple syrup.
- Aug 18 – Hours before they took effect, Trump paused the tariffs for three days, posting that the two countries “have a DEAL!”
- Aug 20-21 – Negotiators met in Washington. No deal.
- Aug 21, near midnight – Canadian Prime Minister Mark Carney suspended negotiations and recalled Canada’s team, calling the U.S. terms “uneconomic” and “unfair.”
- Aug 22, 12:01 AM – The tariffs took effect. Carney called it “a miscalculation” and promised to match dollar for dollar starting September 8. US Trade Representative Jamieson Greer said no further talks were scheduled.
- Aug 24 – Trump threatened to raise Canadian auto, truck, and parts tariffs to 50% on January 1, 2027.
What’s the reason for all these tariffs?
Section 338 requires the president to find that a country actively discriminates against U.S. commerce, so the White House had to name specifics:
- Canada’s dairy quotas, which the proclamation says give European cheese better access to Canadian retailers than American cheese gets.
- Canada’s United States Surtax Order, which imposes a 25% tariff on U.S.-built vehicles (which to be fair, was in response to Trump’s own Section 232 tariffs on Canadian-made cars and parts).
- Provincial liquor boards pulling American wine and spirits off their shelves (which was also in response to Trump’s earlier tariffs)
Carney is now facing pressure at home to explain what he turned down. Conservatives are demanding he release the full text of the U.S. offer, saying they support the decision to reject it but want to see what was actually on the table. Bloomberg reported the tentative deal would have cut U.S. tariffs on Canadian steel and aluminum from 50% to 25%.
Carney said on Saturday, “You’re at war when you get attacked.”
