Overview
- President Donald Trump signed three proclamations this week that impose an extra 50% duty on more than 400 Canadian product categories and will take effect in 30 days.
- The lists cover goods from automobiles, dairy and alcohol to furniture, electronics and building materials while explicitly excluding energy, fisheries, potash and certain critical minerals.
- The proclamations remove ACEUM protections for the targeted items so goods that meet the trade pact’s rules can still face the new surtax.
- Ottawa condemned the move as a direct violation of ACEUM, said it has taken equivalent measures and pledged intensified negotiations and potential reciprocal steps.
- The administration is using section 338 of the Tariff Act alongside other recent measures to rebuild a permanent tariff regime and that strategy has spurred USTR probes, likely legal challenges and risks of higher prices for consumers.