Trump to hit Canada with new 50% tariff

Trump to hit Canada with new 50% tariff

Dramatic ramp up in tariff size, scope set to take effect in 30 days

U.S. President Donald Trump has signed an executive order that will impose tariffs of 50 per cent on a wide range of Canadian exports, a dramatic ramping up of his trade war against his northern neighbour.

The 50 per cent rate is being imposed in response to what a senior administration official described as Canada's retaliation against U.S. trade policy and its discrimination against U.S. motor vehicles, dairy and alcohol.

"This is not a trade war with Canada, these are defensive measures," the official said in a conference call with reporters Monday afternoon.

The new rate is set to take effect in 30 days.

While energy, potash, critical minerals and fish would be exempt, other products that until now have been allowed into the U.S. tariff-free under terms of the Canada-United States-Mexico Agreement (CUSMA) would be hit.

The 50 per cent tariff is five times higher than the current duty imposed on the small portion of Canada's exports to the U.S. that don't comply with CUSMA's rules of origin regulations.

The new rate would apply to a variety of Canadian imports, "ranging from wine to hockey sticks to cement," the official said, adding that the White House will publish a full list of the affected products.

"By doing this, President Trump is levelling the playing field for crucial American exports," said the official.

Mike Crawley is a correspondent for CBC News, based in Washington. He began his career as a newspaper reporter in B.C., spent six years as a freelance journalist in various parts of Africa, then joined the CBC in 2005. Mike reported on Ontario politics for 15 years. He was born and raised in Saint John, N.B.