- Donald Trump has announced new tariffs on Canadian imports, utilizing an obscure 1930s law that has never been used before, with no exemption under the Canada-United States-Mexico Agreement (CUSMA).
- In response, premiers are demanding that PM Carney present a plan to tackle the tariffs, citing a 'new level of urgency'.
- The electronics sector would be the hardest hit, with Canada exporting more than $4 billion US worth of electronics equipment subject to the tariffs, including electrical boards and controllers.
- The plastics industry is also threatened, with about $3 billion US worth of items such as bottles and floor coverings targeted.
- Beverage exports from Canada valued at about $900 million US are under threat.
- British Columbia would be disproportionately affected, with threatened items representing more than 13% of its total exports to the U.S. — the highest of any province.
- Quebec faces a major hit with about 10% of its exports exposed, on top of existing 50% tariffs on steel and aluminum.
- Alberta and Saskatchewan are relatively less affected, with only about one per cent of their exports under threat.
- Trump's tariff strategy faces U.S. Senate scrutiny amid trade negotiations.
- U.S. Trade Representative Greer states that 'China's by far much higher than Canada overall...no question'.
- Ontario Premier Ford says 'Everything is on the table' while Manitoba Premier Kinew defends a booze ban amid the tariff fight.
- Trump’s proposed tariffs could cost the average Canadian household $2,700.
- Trump gets booed at the World Cup and lashes out on Canada, according to a former U.S. ambassador.
U.S. President Donald Trump's latest tariffs, set to impose a 50% duty on a wide range of Canadian imports, are the most significant trade threat Canada has encountered. The tariffs, effective August 19, could impact over $4 billion US in Canadian exports, including electronics and beverages.12
The electronics sector is particularly vulnerable, with certain electrical boards and controllers being the largest value export to the U.S. in the threatened category, valued at approximately $3 billion US. Additionally, about $900 million US worth of beverage exports are also at risk.4567
The tariffs affect various provinces differently; for instance, wood and paper items represent over 13% of total exports from certain provinces to the U.S., while Quebec could see about 10% of its exports exposed to these duties. In contrast, Alberta and Saskatchewan face minimal impact, with only 1% of their exports threatened.910
Trump's use of a 1930s law to impose these tariffs has raised concerns, especially since there are no exemptions under the Canada-United States-Mexico Agreement (CUSMA), which is still under negotiation. Canadian premiers are now calling for Mark Carney to present a strategic response to this escalating trade crisis.3
“The tariffs, imposed under a rarely used 1930s law, hit Canada's electronics ($4B) and plastics ($3B) sectors hardest, with British Columbia facing the highest share of exports at risk (13%). The U.S. Senate is scrutinizing the strategy as Canadian premiers warn of retaliation, and the average household could lose $2,700.”
