New US tariffs, exemptions take effect on Canadian goods

On Tuesday, new US tariffs on Canadian goods began, affecting various products while exempting others. These tariffs are an addition to the sector-specific duties imposed by Donald Trump. Among the items impacted are various cheeses, motorboats, toilet paper, fishing rod parts, and cement. Conversely, toilet and facial tissues, fishing gear, and whiskies in containers over four litres are now exempt from a 50% duty.

Additionally, road salts, essential for states dealing with harsh winter weather, and cement, crucial for construction projects, are also exempt. This move comes weeks before the US midterm elections, as households and businesses grapple with rising living costs. The latest amendments adjust the mix of Canadian products subject to 50% US duties.

US officials emphasized that these tariffs apply to only a small portion of overall bilateral trade. The duties stem from the US-Mexico-Canada free trade agreement, with the White House citing its legal right to impose them under Section 338 of the Tariff Act of 1930. President Trump had previously threatened to raise tariffs on Canadian automobiles from 25% to 50% in January, a threat that remains in effect.