Trump imposed 50% tariffs on a range of goods from Canada

US President Donald Trump has signed an order imposing an additional 50% tariff on a wide range of goods imported from Canada, in response to what he called Canada's "unfair treatment" of American goods such as cars, dairy products, and alcohol, writes the BBC.

"Canada, through discrimination or unreasonable and unequal imposition of restrictions, treats trade with certain foreign countries more favorably than trade with the United States," the document states.

Earlier, Trump stated that "the tariffs Canada levies on our dairy products have been unacceptable for many years."

The tariffs come into effect on August 19 and signify a serious escalation of trade tensions between the North American neighbors.

The White House stated that these tariffs are necessary to protect American businesses.

Which goods will be affected

The tariffs affect a wide range of products — from everyday consumer goods like wine and hockey sticks to industrial products like cement. However, they will not apply to a number of key export goods, including energy carriers, potash fertilizers, critical minerals, and fish.

The new tariffs intensify existing trade barriers between the two countries.

The US maintains tariffs of 15% to 50% on Canadian steel, aluminum, and copper. "The United States is subjected to an unnecessary invasion of disgusting, dirty, and unhealthy air," Trump stated, threatening to introduce new duties due to Canada's "deliberate negligence."

However, there is no mention of forest fires in the decrees signed by Trump.

Instead, the three decrees list known trade disputes concerning American cars, dairy products, and alcohol.

In particular, Trump accuses Canada of levying a tax on American cars and auto parts that are not covered by the existing free trade agreement between Canada, the US, and Mexico, known as USMCA.

He claims this is "unreasonable" and that Canada discriminates against the US by not imposing a similar tax on other countries.

Automotive manufacturing in North America is closely integrated between Canada, the US, and Mexico, however, US Secretary of Commerce Howard Lutnick previously stated that, in his opinion, Canada should "be second" to the United States. Trump also previously named the automotive industry as one of the areas where the two countries have competing interests.

Regarding dairy products, Canadian regulations have long caused dissatisfaction in the US, especially Canada's supply management system, which sets limits on imports from abroad. Goods exceeding the specified limit are subject to a tariff of over 300%.

Finally, the prolonged boycott of American alcohol by most Canadian provinces has become a serious problem for Washington since its announcement last year. Heads of Canadian provinces have repeatedly stated that the boycott would be lifted if the US removed tariffs on key Canadian sectors, including metallurgy and the automotive industry.

Canadian negotiators continue to work on concluding a trade agreement that would at least reduce some of the existing American tariffs, but for now, the situation is only worsening.

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