US President Trump has imposed a 50% tariff on a wide range of goods imported from Canada, in retaliation for what he called “unequal treatment” of US cars, dairy and alcohol. …However, several key exports will be spared, such as energy, potash, critical minerals and fish. Prime Minister Carney responded by saying Canada stood ready to “intensify” trade talks with the US in the coming weeks. The White House said the duties would take effect in 30 days. …A White House fact sheet discussing the new tariffs said they applied regardless of whether the product was included under the existing free trade agreement between Canada, the US and Mexico. The new tariffs add to trade barriers already in place. The US has been maintaining active tariffs ranging from 15% to 50% on Canadian steel, aluminium and copper. It also charges a 35% tariff on softwood lumber, alongside a 25% tax on non-US parts in cars. Meanwhile Canada has its own 25% counter-tariff on selected imports of American steel, aluminium and vehicles.

[Editor’s note: Per Annex I, of the Proclamation, the new tariffs will apply to a range of plywood and veneer products, furniture and paper and paperboard products. Products already subject to Section 232 tariffs, including lumber, are excluded]