Canada urges U.S. trade talks as Trump plans 50% tariffs

Canadian Prime Minister Mark Carney on Monday evening called for a series of trade talks with the United States, hours after U.S. President Donald Trump announced 50% tariffs on most Canadian goods. In rolling out his decision, Trump cited Canadian trade practices that he said were unfair with respect to U.S. cars, alcohol, and dairy products. The new tariffs are set to take effect Aug. 19. The prime minister said Canada had new detailed plans for revamping its trade with the United States and wanted to discuss them over the next few weeks before that date.

Carney also accused Trump of violating the U.S.-Mexico-Canada Trade Agreement by imposing the new tariffs. While the new tariffs do fall on goods covered by USMCA, Trump said he had the authority to impose such tariffs under a 1930 U.S. law allowing the president to issue proclamations to offset foreign trade discrimination. The United States has also refused to renew USMCA in its current form, though the agreement remains in effect until 2036.

It was unclear whether Trump would accept Carney’s call for talks. A White House social media account on Monday night stated that only Canada and China had chosen to retaliate against Trump’s tariffs rather than negotiate a deal.

Which Canadian goods would be affected by Trump’s new tariffs? The 50% levies would apply to most Canadian goods, from wine to hockey sticks, with the exception of:

• Energy

• Potash

• Fish

• Critical materials

• Goods already falling under Section 232 tariffs, including metals, auto parts, and pharmaceuticals

Dig deeper: Read my report on the U.S. decision not to extend the U.S.-Canada-Mexico Trade Agreement.