Donald Trump Hits Canada with Fresh 50% Tariffs, Alleges Unfair Trade Practices

Washington: US President Donald Trump has announced the imposition of heavy tariffs of up to 50 percent on many products imported from Canada. The White House says the move has been taken in response to Canada's discriminatory treatment of American cars, wine and dairy products. It is believed that this may open a new front of the global trade war.

Which products will have 50% tariff?

Under the new tariff regime, 50 per cent import duty will be imposed on many items including wine, cement, ice hockey equipment, dairy products, swimming pools, furniture, fishing rods, seeds, clothing and wigs. This decision is likely to be implemented in the next 30 days.

Was the 100-year-old law used for the first time?

The Trump administration has used Section 338 of the Tariff Act, 1930 to implement these tariffs. The law allows the President to impose punitive tariffs of up to 50 percent on countries that discriminate against American products. This nearly a century old provision has been used for the first time.

Did America make these allegations against Canada?

US Trade Representative Jamieson Greer said the US is trying to make fair and balanced deals with its trading partners, but Canada continues to take retaliatory trade measures that are hurting American industries. They allege that Canada has imposed such rules on American cars, liquor and dairy products, which are harmful to American companies.

How did Canada respond?

Canadian Prime Minister Mark Carney, reacting to Trump's decision, said that his government has made comprehensive proposals to America to resolve the trade dispute. He claimed that the tariffs imposed earlier by Trump were against the North American Free Trade Agreement (USMCA). Carney said Canada is ready to negotiate and wants a solution in the interest of the citizens of both countries.

Will tension between the two countries increase due to trade dispute?

The Trump administration alleges that Canada and China took retaliatory measures in response to previously imposed US tariffs. At the same time, America says that many provinces of Canada have also stopped the sale of American liquor. According to the White House, imports of American vehicles into Canada have declined by 22 percent and sales of American alcohol by 81 percent in the past year.

Will global trade be affected?

Experts believe that this increasing trade conflict between America and Canada can affect the global supply chain and international trade. If an agreement is not reached between the two countries soon, its impact may be seen on many industries and consumers.