WASHINGTON (AP) — President Donald Trump has reached back to the Great Depression for an obscure trade weapon he can use to wallop Canada again.Trump on Monday announced 50% tariffs on some Canadian products, ratcheting up tensions with one of the closest U.S. allies.The move threatens to push prices higher at a time when Americans are already frustrated with the high cost of living ahead of the Nov. 3 midterm elections. It’s also unclear whether Trump’s latest tariffs would survive a legal challenge.Tariffs are taxes on foreign products. They’re paid by importers in the United States who often pass the costs along to consumers in the form of higher prices.Trump punishes Canada for its retaliatory tariffsTrump invoked Section 338 of the Tariff Act of 1930 to impose 50% tariffs on Canadian products ranging from hockey sticks to beer. In proclamations issued Monday, Trump claimed that Canada discriminates against American exports of autos, alcohol and cheese. He is angry over Canada’s retaliation against his own tariffs last year, which were imposed under the pretext that Canada should do more to stop fentanyl smuggling.
The president has repeatedly sparred with his northern neighbor, declaring that Canada should be the 51st U.S. state and threatening tariffs over wildfires that have sent heavy smoke wafting over to the United States. His taunts, threats and trade sanctions have enraged Canadians and led to boycotts of American goods. Most Canadian provinces, for instance, have banned the sale of alcoholic beverages from the United States.The U.S. is renegotiating a trade pact — the US-Mexico-Canada Agreement. And the threat of Section 338 tariffs, set to take effect Aug. 19, gives the United States leverage to seek concessions from Ottawa.
