Trump vows tariffs on Canada over wildfire smoke
The move targets roughly $20 billion in imports and is the first use of Section 338, which caps extra duties at 50 percent.
- On July 20, the United States administration invoked Section 338 of the Tariff Act to impose 50% tariffs on roughly $20 billion of Canadian goods, effective August 19, citing grievances over American autos, alcohol, and dairy.
- Reviving the 1930 Tariff Act, this marks the first use of Section 338 since 1949, as United States trade ambassador Jamieson Greer stated the administration intends to "make an example of Canada" and rebalance trade.
- Despite removing bans on American alcohol, Alberta and Saskatchewan faced the same 50% duties as other provinces, demonstrating the tariffs allow the United States to discriminate between regions and target provinces individually.
- Just last week, Jordan became a country to voluntarily accept new tariffs and trade rules in exchange for relief, as the administration uses similar tactics against Canadian industries to keep countries in line.
- Policy experts at the University of Calgary School of Public Policy warn the 30-day window before August 19 acts as a contest over public understanding, where provinces may compete against one another for relief.
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