The new tariff changes by the United States on Canadian goods came into effect on Tuesday, with some new products added to the list of items subject to a 50 percent tariff. These changes occur at a time when households and businesses are facing high living costs, and the recent tariffs may impose additional financial pressure on certain groups.
Goods Subject to and Exempt from Tariffs
In the new list, various cheeses, motorboats, paper, and aluminum and steel products have been added to the items subject to tariffs. Additionally, mattresses and certain types of furniture have also been affected by these tariffs. However, toilet paper, fishing gear, and alcoholic beverages in containers larger than four liters have been exempted from the 50 percent tariff.
Other materials such as road salt, which is needed in states with harsh winters, and cement, which is essential for construction projects, have also been exempt from these tariffs.
Officials' Responses and Political Impacts
Senator Susan Collins from Maine, whose seat is crucial for Republicans, has specifically raised the impact of tariffs on road salt and cement with the federal government. These tariffs represent the latest actions in the escalating trade war between America's northern neighbors.
President Donald Trump imposed a 50 percent tariff on imported goods worth $20 billion from Canada in August due to failed trade negotiations, which led to reciprocal tariffs imposed by Ottawa of the same value. Last week, the White House announced that restrictions on certain alcoholic beverages and dairy products would be implemented in response to Canada's retaliatory actions.
Trump has utilized a lesser-known legal provision to impose these tariffs on Canadian goods, specifically Section 338 of the Tariff Act of 1930. These tariffs include goods covered under the United States-Mexico-Canada Agreement and are added to other specific tariffs imposed by Trump.
While tariffs on Canadian goods have been implemented, U.S. officials announced last week that Trump's previous threat to increase tariffs on Canadian cars from 25 percent to 50 percent in January remains in effect.
