President Trump signed three proclamations Monday putting 50% tariffs on about $20B of Canadian exports, effective in 30 days. The tariffs retaliate against Canadian duties on U.S. cars and provincial bans on American liquor, both imposed in response to Trump’s earlier tariffs, along with Canada’s dairy supply management system, which predates him by decades. These new tariffs hit goods that normally cross the border duty-free under USMCA, the trade agreement that replaced NAFTA. The proclamation supposedly tied to autos runs 18 pages and taxes non-vehicle categories including plywood, clothing, hand tools, Christmas ornaments, and antiques. Trump is using Section 338 of the Tariff Act of 1930 for the first time, a Depression-era provision allowing tariffs of up to 50% without any investigation. Trade lawyers expect a court challenge.
