- Canada faces a new round of 50% tariffs on roughly $20 billion worth of its goods starting Wednesday, with negotiators on both sides still far from a deal that would prevent them from taking effect.
- The duties stem from Trump's invocation last month of Section 338 of the Tariff Act of 1930, targeting a range of Canadian goods — from wine, furniture, and dairy products to cement, clothing, fishing rods, and hockey equipment.
- Canadian Trade Minister Dominic LeBlanc told an advisory committee on Friday that Canada and the United States remain far from reaching a draft deal despite regular meetings.
- LeBlanc has met with U.S. Trade Representative Jamieson Greer five times in four weeks, including a virtual meeting on Sunday.
- Business groups warned of significant fallout if the tariffs take effect, with Alain Ouzilleau, owner of Canadian custom kitchen cabinet brand Cabico Ltd, stating that a 50% tariff 'is simply not something that manufacturers can absorb, nor can we reasonably expect our U.S. customers to absorb it.'
- Dan Kelly, president of the Canadian Federation of Independent Business, said the tariffs 'will cause massive dislocation for small businesses that rely on U.S. clients and American buyers that rely on Canadian suppliers.'
- Despite the warnings, University of Toronto economics professor Joseph Steinberg noted that the targeted goods represent only about 5.2% of the roughly $383 billion in Canadian exports to the U.S. last year.
Canada is bracing for a new wave of economic challenges as 50% tariffs on approximately $20 billion worth of goods will take effect starting Wednesday.156
The tariffs arise from President Trump's invocation of Section 338 of the Tariff Act of 1930, targeting a diverse range of Canadian products including wine, furniture, dairy, cement, clothing, fishing rods, and hockey equipment.2
Canadian Trade Minister Dominic LeBlanc indicated that despite ongoing discussions, Canada and the U.S. remain far from a draft deal. LeBlanc has met with U.S. Trade Representative Jamieson Greer five times in the past month, including a virtual meeting on Sunday.34
Business leaders are voicing concerns about the potential fallout from these tariffs. Alain Ouzilleau, owner of Cabico Ltd, stated that a 50% tariff 'is simply not something that manufacturers can absorb, nor can we reasonably expect our U.S. customers to absorb it.'
Dan Kelly, president of the Canadian Federation of Independent Business, warned that the tariffs 'will cause massive dislocation for small businesses that rely on U.S. clients and American buyers that rely on Canadian suppliers.'7
However, University of Toronto economics professor Joseph Steinberg noted that the affected goods represent only about 5.2% of the $383 billion in Canadian exports to the U.S. last year, suggesting the overall economic impact may be less severe than feared.8
“Canadian Trade Minister Dominic LeBlanc has met with U.S. Trade Representative Jamieson Greer five times in four weeks, yet a draft deal remains elusive. Business leaders warn that a 50% tariff could lead to significant fallout, with Dan Kelly stating it 'will cause massive dislocation for small businesses.'”
qz.com
