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Canada's prime minister has spent little political capital in making concessions, but offering more comes with risks.
The president said punishing 50 percent tariffs would begin by Aug. 19, a significant escalation of the trade war between Canada and the U.S. that he started over a year ago.
President Trump announces additional 50% tariffs on $20 billion worth of Canadian imports, including wine and hockey sticks.
President Donald Trump on Monday imposed 50% tariffs on most Canadian goods, declaring that Canada has unfairly discriminated against American autos, alcohol and dairy products.The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump's return to the White House. The administration official previewing the action said that Canada was one of the only nations other than China that retaliated against Trump's previous tariffs and must be held accountable.The official insisted on anonymity on a call with reporters to preview the president's actions and said that Trump signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act.
U.S. Treasury Secretary Scott Bessent said on Tuesday that the 50% tariffs on a range of imports from Canada were "reciprocity" for trade actions by Ottawa on U.S. dairy, alcohol and beverages.
The macro backdrop appears murky as President Trump sets a 50% tariff on Canadian goods, paired with lasting tensions between the U.S. and Iran pinning pressure on crude oil. Alex Coffey discusses the key points to keep in mind and how it affects Tuesday's trading session.
Carney's statement added: “Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernize CUSMA.
Rep. Jeff Van Drew, R-N.J., discusses President Donald Trump's 50% tariffs on Canada on 'The Evening Edit.