Canada Hit with 50% U.S. Tariffs, Vows to Resolve Through Negotiation

U.S. Government Revives Century-Old Tariff Act
Seen as a Tool to Pressure Other Countries

Canadian Prime Minister Mark Carney announced on the 21st (local time) that he had spoken with U.S. President Donald Trump regarding the 50% additional tariffs the United States imposed on major Canadian goods the previous day, and that both sides agreed to accelerate trade negotiations.

Canadian Prime Minister Mark Carney is answering reporters' questions near the Prime Minister's residence in Ottawa on the 21st (local time). Photo by AP Yonhap News

Prime Minister Carney met with reporters in Ottawa on this day and stated, "Yesterday, the United States announced its implementation of new trade measures against Canada," noting, "This is the latest in a series of actions that directly violate the Canada-United States-Mexico Agreement (CUSMA)." He further explained, "I spoke with President Trump this morning. We have agreed to strengthen negotiations over the next few weeks, and both my team and I look forward to this process."

Prime Minister Carney said, "Our top priority is, of course, to reach a comprehensive agreement that benefits both countries," elaborating, "This is in line with the current and future CUSMA." Regarding the implementation of the newly announced tariffs, he commented, "If they actually take effect, we will review all available options."

The previous day, President Trump signed a proclamation imposing an additional 50% tariff on certain Canadian products, based on Section 338 of the Tariff Act of 1930. The new tariffs, which will take effect in 30 days, target alcoholic beverages such as wine and whisky, dairy products such as cheese, hockey sticks, cement, honey, and others.

The Trump administration explained that the new tariff measure was in response to Canada’s discriminatory treatment of U.S. products. While meeting Lebanese President Joseph Aoun at the White House that day, President Trump responded to questions about the Canadian tariffs by saying, "Canada has been very, very tough with us for over 50 years," and added, "We are separately looking into issues caused by wildfires."

There is analysis suggesting that the Trump administration’s move to invoke Section 338—which has seen almost no use in the 96 years since its establishment—is intended as leverage not only against Canada, but also to put pressure on other countries. U.S. broadcaster CNN pointed out that these tariff actions send a message to America's other trade partners that "they could be next."

Stephen Brown, Chief Economist at the economic forecasting firm Capital Economics (CE), remarked, "The Trump administration may be testing whether the 1930 Tariff Act could be used to impose tariffs on other countries in the future."

This content was produced with the assistance of AI translation services.