New 50% tariffs on Canadian imports escalate trade tensions, prompting urgent negotiations ahead of an August 19 deadline.
The U.S. has imposed 50% tariffs on a broad range of Canadian imports, escalating trade tensions under Section 338 of the Tariff Act of 1930. The move marks the first use of the law and violates the spirit of the USMCA trade agreement, according to Canadian officials.
The tariffs, set to take effect on August 19, follow a year of U.S. pressure on Canada to remove retaliatory measures. U.S. Trade Representative Jamieson Greer called discussions constructive but reiterated demands to reduce the trade deficit and boost U.S. manufacturing.
Both sides agreed to intensify negotiations in the coming weeks, though no immediate resolution was announced. Markets remain cautious as the deadline approaches.