Canada debates retaliation as Trump readies 50% tariffs on hundreds of goods
Canada is scrambling to avoid 50% tariffs slated for Aug. 19 under a rarely used trade provision, while experts clash over whether Ottawa should strike back.
Canada’s trade team, headed by Dominic LeBlanc and chief negotiator Janice Charette, is working urgently with Jamieson Greer’s U.S. trade office to prevent the activation of 50% tariffs on hundreds of Canadian exports scheduled for Aug. 19 under Section 338 of the 1930 Tariff Act. The same talks aim to secure relief from Section 232 duties that have already hurt the lumber, aluminum and steel sectors. Prime Minister Mark Carney has signaled that every possible response is being considered should the talks break down.
Trade scholars are divided: Lawrence Herman of the C.D. Howe Institute argues Ottawa should have issued an immediate list of retaliatory targets, while Inu Manak of the Peterson Institute suggests a pause to let U.S. market and political pressures build. Jamie Tronnes warns that any counter-measures may have limited impact, and Richard Stern and former minister Ed Fast caution that retaliation could backfire, given the United States’ greater economic resilience. Legal routes through CUSMA dispute panels or courts exist but are unlikely to yield swift results.
Why it matters
The dispute could reshape North American trade flows and affect prices for everyday goods in both countries.
How this story developed
- Jul 23 White House signals upcoming tariff announcement as Trump readies new trade measures
- Aug 6 Administration refunded roughly $100 billion of previously collected tariffs and imposed new 10‑12.5% duties on imports from about 60‑80 countries.
- Aug 13 The White House issued an assessment on August 13 that flagged over 40 foreign partners as high‑risk for facilitating tariff evasion.
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