Trump imposes 50% duties on wide range of Canadian imports

[00:00:00]on US President Donald Trump imposing an additional 50% tariffs on a wide range of imports from Canada in response to what his administration has called discriminatory treatment of Americanmade cars, alcohol, and dairy goods. The new tariffs are set to take effect in 30 days are threatening a new front in the global trade war affecting nearly 20 billion of Canadian imports. Well, this is the latest flash point in already strained ties as two countries renegotiate the USMCA trade pact signed during President Trump's first term in office.

[00:00:37]Jagrati Davi reporting the story for CN.

[00:00:39]She joins us live from Washington DC.

[00:00:41]Jagrati, uh the tra tensions over tariffs never actually gone away despite the fact that we have moved on suddenly on headlines. The US deciding again to impose tariffs on Canada. What does this mean for other countries still engaged in tariff negotiations with the United States?

[00:01:02]>> Yeah. Wayu, if we look at why the president uh has decided to slap these tariffs on Canada, one of the things he US administration who's speaking anonymously to US media saying is that Canada was one of the only countries other than China to hit back following Trump's previous tariffs. um and that needs to be punished essentially is what they're saying. He's launched these new tariffs under section 338 of the 1930 trade act and this essentially allows the US to impose tariffs on countries that it says discriminate uniquely against the US. This was written during the great depression and what this means I think for other countries who are going to be watching this is uh what how the negotiations with Canada play it out. Some experts are saying that this is done by the Trump administration to give them leverage in the upcoming uh USMCA negotiations. Uh as you mentioned, the president's been asking for changes to those since he signed them in 2018.

[00:02:03]He's he's talking to Mexico with a with a third round of talks, but the US hasn't actually even started discussions with Canada. That's the extent of the tensions between the two sides. And the US has also launched a number of investigations into into several country investigations into several countries because if you remember the Supreme Court slapped down those previous reciprocal tariffs that the US had imposed and so the US has been looking at different ways in in which to impose tariffs on countries. So some of those countries like the EU, China, Indonesia, Malaysia, Japan in uh they they are all looking to see the outcome of those investigations and then what it means for them because the FT is reporting there's potentially new tariffs on in dozens of countries as soon as this week. So they'll also be wanting to see if these new tariffs that the president is imposed on Canada get struck down by the courts, which is where it's likely to be heading according to legal experts. Now, Canada, one and a half years of Trump 2.0 is not unaccustomed to what Mr. Trump might do. How has it responded so far?

[00:03:10]>> Yeah, Mark Connley's issued a statement saying that Candace offered suggestions to update the USMCA over the last 18 months and is ready to intensify those discussions. He's also called these latest tariffs one of several US actions that are in direct violation of the US MCA. and he said that Canada's reciprocal action merely matched those measures imposed by the US which he said is Canada's right and he's also saying this trade dispute between the US and Canada has raised costs for families particularly in the US and he says that Canada Mr. Carney says Canada stands ready to engage intensively to address outstanding issues.

[00:03:47]>> Oh, thanks Johny Davi covering this story for CN live from Washington DC.