The United States will remove some Canadian goods from the scope of 50% tariffs imposed by the Donald Trump administration. The change will take effect on October 30 and affects plywood sheets, some paper products, certain machinery and refrigeration equipment, as well as some packaging crates and boxes.
At the same time, Washington will add other Canadian products to the tariff list, including certain valves, carpets and waste materials. Thus, the decision does not constitute a general elimination of tariffs, but a review of the specific categories of goods for which the additional rate is charged.
Changes begin on October 30
The White House announced that President Trump has signed a proclamation under Section 338 of the Tariff Act of 1930. The document amends an earlier proclamation related to the US administration's allegations that Canada discriminates against American exports, including in the automotive sector.
“President Trump further specified the scope of the tariffs to offset the burden on American trade while protecting the public interest“, the White House statement said.
The new rules will apply to all goods included in the scope of the measures, regardless of whether they are produced under the terms of the agreement between the United States, Mexico and Canada. They will be levied in addition to the duties imposed under Section 232 of the Trade Expansion Act of 1962.
The measure comes after retaliatory Canadian tariffs
The initial 50% tariffs on certain Canadian goods were announced on July 20. In September, the Trump administration expanded some of the restrictions and banned imports of some Canadian products, including alcoholic beverages, dairy products and motorcycles.
According to the White House, Canada has imposed retaliatory tariffs on about $20 billion in American exports. Washington presents the new redistribution of tariff categories as a response to the Canadian measures and as an attempt to reduce costs for American businesses.
The Associated Press reported that among those affected by the high tariffs are American farmers and businesses that use specialized equipment, packaging and other materials from Canada. Some of these goods can hardly be replaced with American products without a significant increase in costs.
The changes will begin to be implemented on October 30. Until that date, the current list of goods subject to a 50% tariff remains unchanged.
Sources: apnews.com