Canada prepares for U.S. 50% tariffs as negotiators remain far from deal
Measures set to hit roughly $20 billion of Canadian goods, while Ottawa and Washington remain far apart in talks.
Canada is bracing for a fresh wave of U.S. punitive duties of up to 50 percent that are scheduled to take effect on Wednesday, after negotiators from the two countries failed to narrow major differences.
The tariffs will target roughly $20 billion in Canadian exports — about 5.2 percent of total U.S. imports from Canada by 2025 — and cover a wide range of goods, officials say.
Last month, U.S. President Donald Trump invoked Section 338 of the Tariff Act of 1930, a provision that allows Washington to impose punitive duties of up to 50 percent on countries it says discriminate against American products.
Items named for the new duties include wine, furniture, dairy products, cement and clothing, among others. Unlike earlier U.S. tariff actions, these measures will also apply to goods that would normally qualify for preferential treatment under the United States–Mexico–Canada Agreement (USMCA).
Talks in Washington show little progress
Canada’s minister responsible for trade with the United States, Dominic LeBlanc, and Canada’s chief negotiator, Janice Charette, have continued talks with U.S. representatives in Washington but say substantial gaps remain between the two sides. LeBlanc said last week: "Canada and the United States are not close to a draft trade deal."
Analysts and business groups warn the new levies could hit small and medium-sized enterprises and sectors already under strain, raising costs for exporters and possibly shifting supply chains if the duties remain in place.
Photo: press material from the event
