Why did President Trump delay tariffs on Canadian imports by three days?
President Donald Trump postponed 50% tariffs on $20 billion worth of Canadian imports.
WASHINGTON —
President Donald Trump delayed imposing 50% tariffs on $20 billion worth of Canadian imports just hours before they were set to take effect. This step comes as the U.S. renegotiates the trade pact with Canada and Mexico.
The tariffs would have targeted products such as hockey sticks and tongue depressors. While the 50% rate may seem significant, it would only cover about 5% of Canada’s exports to the U.S. by value.
“This tariff action only involves a subset of Canadian imports. So it’s not going to be like you’re going to see prices go up in a whole range of goods because of this tariff action specifically,” said Alfredo Carrillo Obregon, a trade policy analyst at the Cato Institute.
The levies would have applied to goods previously protected under the United States-Mexico-Canada Agreement, a trade pact established during Trump’s first term that is now being renegotiated. Experts suggest the Trump administration may be using the threat of new tariffs to gain leverage in these discussions.
The president is reportedly looking to impose the tariffs by invoking Section 338 of a Great Depression-era law known as the Tariff Act of 1930 for the first time in history. He’s arguing Canada has discriminated against American alcohol, auto, and dairy exports.
This section authorizes the president to impose tariffs of up to 50% on imports from countries that have discriminated against U.S. businesses.
Earlier this year, the Supreme Court limited the president’s ability to impose tariffs under a different trade law. Now, Trump is turning to other legal tools like Section 338 to carry out additional levies.
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