Canada Braces for $20 Billion in New US Tariffs

Canada is bracing for a new round of 50% US tariffs on nearly $20 billion worth of goods, including wine, furniture, dairy products, and clothing. This comes after President Donald Trump invoked Section 338 of the Tariff Act of 1930 to impose punitive duties on Canadian imports.

The tariffs will apply even to products that qualify for preferential treatment under the USMCA agreement, posing an added risk to Canada's economy.

Canada's struggling wood product sector and wine industry could be hit hard by the new tariffs, leading to job losses and lower growth. Alain Ouzilleau, owner of Cabico Ltd, said a 50% tariff would make certain Canadian-made products economically noncompetitive in the US market overnight.

Small and medium-sized businesses could be particularly vulnerable due to their reliance on tariff-free access to US customers.