U.S. Slaps 50% Tariffs on $20 Billion of Canadian Goods, Undercutting USMCA
Updated
Updated · Fox News · Sep 1
U.S. Slaps 50% Tariffs on $20 Billion of Canadian Goods, Undercutting USMCA
3 articles · Updated · Fox News · Sep 1
Summary
$20 billion of Canadian goods began facing 50% U.S. Section 338 tariffs on Aug. 22, with the duties applying even to USMCA-compliant products and stacking on top of normal rates.
That breaks with earlier carveouts under the North American trade pact, after firms spent billions to reorganize supply chains; imports claiming USMCA preference had risen to 86% by February from about 45% in late 2024.
Ottawa plans retaliatory tariffs on roughly $20 billion of U.S. exports from Sept. 8, but the current measures still cover only about 5% of Canada’s sales to the U.S. and 6% of its imports from the U.S.
January is the bigger flashpoint: 50% tariffs are set to expand to cars, trucks and auto parts, potentially pushing well over $100 billion in bilateral trade into a broader tariff war.
The report argues the current tariff structure can leave U.S. manufacturers paying more on Canadian inputs than rivals importing finished goods from China or Korea, raising pressure for a negotiated deal.