Trump Uses Never-Before-Used Trade Law to Slap 50% Tariffs on Canadian Goods

Former President Donald Trump has invoked a little-known provision from the 1930 Tariff Act, marking the first time in U.S. history that Section 338 has been used. The move imposes a 50% tariff on a wide range of Canadian imports, including wine and hockey sticks. Section 338 allows the president to impose steep tariffs on goods from any country found to be discriminating against U.S. commerce. Until now, no president had ever activated this power. The tariffs are expected to significantly impact bilateral trade between the U.S. and Canada, two of each other's largest trading partners. Canadian officials have expressed surprise and concern, noting that such a broad tariff could disrupt supply chains and raise prices for consumers. Trump's decision expands his established tariff playbook, which previously relied on national security and unfair trade practices as justifications. The move underscores his willingness to use aggressive trade tactics to pressure allies. Critics argue that invoking an obsolete law could lead to retaliation and undermine global trade rules. Supporters say it sends a strong message about protecting American industries. The tariffs take effect immediately, and Canada is expected to respond with countermeasures. Trade experts say the long-term consequences are uncertain but could reshape North American trade relations.