Donald Trump has now imposed 50 percent tariff on Canada, these products are in the list including liquor, dairy

President of America donald trump has announced the imposition of a new tariff of up to 50 percent on many products coming from Canada. After this decision, there is a possibility of further increase in trade tension between America and Canada. The Trump administration alleges that Canada is treating American cars, liquor and dairy products unfairly, hence this step has been taken. Under the new tariff, tariffs will be imposed on liquor, cement, ice hockey machinery, dairy products, furniture, swimming pools, fishing rods, seeds, clothes, wigs and many other things. This tariff will be applicable after 30 days.

The Trump administration has used Section 338 of the Tariff Act of 1930 for this decision. This law allows the President to impose tariffs of up to 50 percent against countries that discriminate against American goods. The special thing is that almost 100 years old law has been used for the first time. US Trade Representative Jameson Greer said that America wants fair and balanced trade agreements with its trading partners. They allege that Canada is continuously taking wrong steps in response to America’s trade policies, which has increased the dispute between the two countries.

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Statement by Canadian Prime Minister Mark Carney

Canadian Prime Minister Mark Carney said that this trade dispute is proving costly for the people of both the countries. He said that Canada is ready to resolve the pending issues through dialogue with America. The Trump administration says that Canada and China have also taken retaliatory steps at their own level in response to the tariffs imposed by America. For this reason America is now adopting a more strict stance. Recently, Trump and Carney also met during the FIFA World Cup final in New Jersey. During this, Trump also raised the issue of forest fire in Canada and the smoke spreading from it in America. He has already indicated that additional pressure may be placed on Canada given the environmental and economic costs.

Famous Tariff Act in American History

The Tariff Act of 1930 has been much discussed in American history. It is believed that the heavy tariffs and retaliatory sanctions imposed during that period had harmed global trade and made the situation of the Great Depression more serious. Former US trade official John Veroneau said that the purpose of Section 338 was to enforce equal trade rules between countries, but now it is being used to impose retaliatory tariffs. According to him, this is a situation different from the basic spirit of the law. After the Second World War, many countries of the world adopted the Most Favored Nation System to reduce discrimination in trade and provide equal opportunities. The new tariff announced by Trump is going to be implemented from August 19. However, some important things have been exempted from this. These include energy products, potash, fish, critical minerals and those products which are already under separate tariff regime under Section 232.

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