New 50% U.S. tariffs on Canadian imports will impact construction

Duties will be levied on wood products, machinery, and chemicals.

President Donald Trump recently issued orders to impose an additional 50% tariff on many imports from Canada starting Aug. 19.

Trump’s action applies to imports regardless of whether the goods originated through the United States-Mexico-Canada Trade Agreement.

The additional levies apply to goods used by the construction industry such as wood products, machinery, and chemicals.

Trump enacted the maximum tariff under Section 338 of the Tariff Act of 1930 after his administration formally found that Canada’s trade practices in various key sectors discriminated against the U.S. The findings cited Canadian tariffs tied to alcohol, dairy, and motor vehicle imports from the U.S.

The new tariffs are the latest action in a trade war with Canada that has involved tit-for-tat actions between the two countries including tariff threats and sector-specific import levies over the past year.  

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