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TWN
Info Service on WTO and Trade Issues (Jul26/18) Trade:
US employs obscure 1930 law to slap Canada with 50% tariffs Geneva, 22 Jul (D. Ravi Kanth) -- Canada's Prime Minister Mark Carney has reportedly criticized United States President Donald Trump's threat to impose 50% tariffs on most Canadian products within 30 days. The threat stems from Canada's alleged discrimination against US alcohol, automobiles, and dairy products. Ottawa indicated that it is considering discussing the issue with President Trump this week, according to media reports. President Trump signed three proclamations targeting Canadian sectors using Section 338 of the Tariff Act of 1930. This marks the first time Section 338 has been triggered since its enactment following the Great Depression. According to the White House, the tariffs respond to "continued discrimination" by Canada against US products. However, the proposed tariffs extend beyond the cited sectors to include goods such as cement and hockey sticks. The duties will not take effect for 30 days, with a US administration official suggesting that negotiations could occur before their imposition. Notably, the US and Canada have yet to begin negotiations on possible changes to the US-Mexico-Canada Agreement (USMCA), although discussions with Mexico are ongoing this week. US Trade Representative (USTR) Ambassador Jamieson Greer stated that the new tariffs are a response to Canada being one of only two countries to retaliate when the US administration imposed reciprocal tariffs globally using the International Emergency Economic Powers Act (IEEPA). "Specifically, Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies re-shoring to the United States," Ambassador Greer said. A White House fact sheet described the tariffs as an effort to offset "the burden and disadvantage on US commerce from Canada's discriminatory treatment of US commerce and is leveling the playing field for crucial American exports - cars, alcohol, and dairy." The tariffs apply to all covered goods regardless of USMCA origin status. Exemptions include energy, potash, products subject to Section 232 tariffs, and certain other goods such as fish or critical minerals. The White House clarified that Section 338 empowers the US President to impose tariffs when a country disadvantages US exporters relative to the exports of another country, thereby offsetting the disadvantage or burden on US commerce. +
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