{"id":5758,"date":"2026-08-22T14:09:09","date_gmt":"2026-08-22T14:09:09","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=5758"},"modified":"2026-08-22T14:09:09","modified_gmt":"2026-08-22T14:09:09","slug":"u-s-hits-canada-with-50-tariffs-invoking-a-notorious-great-depression-law-that-has-never-been-used-before-to-impose-import-taxes","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=5758","title":{"rendered":"U.S. hits Canada with 50% tariffs, invoking a notorious Great Depression law that has never been used before to impose import taxes"},"content":{"rendered":"
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President Donald Trump\u2019s import taxes will hit about 5% of what\u00a0Canada ships to the United States\u00a0every year, including products ranging from hockey sticks to tongue depressors.<\/p>\n

Read more The veteran Fortune 500 CEO who turned an 80-year-old AC company into an AI darling<\/a><\/p>\n

\u201cCanada will match those tariffs dollar for dollar to protect our workers and businesses,\u201d Prime Minister Mark Carney said in a statement. The retaliation escalates the trade conflict and calls into question the future of a\u00a0North American trade agreement\u00a0covering the United States, Canada and Mexico that is crucial to industry in all three countries.<\/p>\n

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Canada had sought concessions on tariffs on steel, aluminum, autos and lumber.<\/p>\n

\u201cTonight, Canada declined to finalize the trade deal under the terms agreed earlier this week. Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days,\u201d U.S. Trade Representative Jamieson Greer said in a statement read to reporters shortly before midnight.<\/p>\n

Carney blamed the Republican administration for the breakdown, saying \u201clast-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.\u201d He said he had suspended negotiations and directed Canada\u2019s negotiating team to return to Ottawa.<\/p>\n

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Carney said his government would announce additional support for Canadian workers and businesses in the coming days.<\/p>\n

Greer said the U.S. offer was \u201cforward-looking\u201d and included \u201ca historic economic and national security partnership.\u201d<\/p>\n

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No further talks are planned.<\/p>\n

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The breakdown in negotiations marked a sharp reversal from two days earlier, when officials from the two countries sounded as if they were headed toward a compromise.<\/p>\n

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Carney said Canada\u2019s goal throughout the negotiations had been to secure the best possible agreement, \u201cnever a deal at any price or on any deadline.\u201d<\/p>\n

Ontario Premier Doug Ford, who leads Canada\u2019s most populous province, backed Carney\u2019s response, saying the prime minister had his \u201cfull support\u201d for retaliation \u201ctariff for tariff, dollar for dollar\u201d and that \u201ceverything needs to be on the table.\u201d<\/p>\n

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A typically cooperative alliance goes sour<\/h4>\n

The political impact will likely be even bigger than the economic fallout. The countries sold each other $880 billion worth of goods and services last year.<\/p>\n

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The tariffs were initially supposed to kick in at 12:01 a.m. Wednesday. Trump extended the deadline for three days to allow talks to continue, but the countries could not reach an agreement in time.<\/p>\n

The U.S. and Canada have wrangled for decades over trade, poking each other over sore spots such as Canadian softwood lumber imports and U.S. access to Canada\u2019s protected dairy market.<\/p>\n

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Somehow, they still managed to remain friends, allies and trading partners. Canadian soldiers fought alongside Americans in Afghanistan after 9\/11. The 5,525-mile U.S.-Canada border is undefended, and\u00a0nearly 330,000 people\u00a0and $2 billion worth of goods cross it every day; 800,000 Canadians live in the United States.<\/p>\n

Read more Republicans say let them eat overpriced burgers, turning on Trump for \u2018flooding the market with foreign beef\u2019<\/a><\/p>\n

Trump\u2019s approach to dealing with Canada marks an extraordinary departure from the traditionally cooperative relationship between the two countries. Trump has imposed tariffs on Canadian goods in a push to bring manufacturing back to the United States and made inflammatory comments about\u00a0turning Canada into America\u2019s 51st state.<\/p>\n

Carney said Canada had recognized that \u201cAmerica has changed\u201d and that the two countries would \u201cnot return to our old relationship.\u201d<\/p>\n

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Canadians and Americans are frustrated<\/h4>\n

The Canadian public is fed up. A petition to expel U.S. Ambassador Pete Hoekstra, a Trump ally, has collected nearly 248,000 signatures since July 21. It accuses the former Republican congressman from Michigan of having \u201cnormalized\u2019\u2019 Trump\u2019s talk of annexing Canada, among other things.<\/p>\n

The two countries had good reasons to find a compromise.<\/p>\n

Nearly\u00a072% of Canada\u2019s goods\u00a0exports last year went to the United States. The Trump administration might be wary of imposing new tariffs \u2014 paid by U.S. importers who try to pass along the cost to consumers via higher prices \u2014 before the November\u2019s midterm elections. American voters are already frustrated with the high cost of living.<\/p>\n

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\u201cCanada likely wanted further sector-specific relief than the U.S. was willing to offer, or Canada\u2019s concessions did not go far enough,\u201d said Ryan Majerus, a partner at King & Spalding and a former U.S. trade official. \u201cEither way, I think both sides will be under immense pressure in the coming days to still find an off-ramp. But if Canada has agreed to also impose tariffs, the off-ramp may be even harder to find.\u201d<\/p>\n

Candace Laing, president and CEO of the Canadian Chamber of Commerce, called the tariffs \u201ca body blow to North American competitiveness\u201d and warned they would raise costs for Americans while threatening Canadian customers, investment and small businesses.<\/p>\n

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Trump has turned to Depression-era trade penalties<\/h4>\n

Trump has made tariffs the centerpiece of his second-term economic agenda. Last year, he imposed double-digit import taxes on almost every country, justifying them by declaring the long-standing U.S. trade deficit a national emergency. The Supreme Court in February ruled that he had overstepped his authority. The justices struck down the trade penalties and set the stage for the federal government to\u00a0pay refunds to importers.<\/p>\n

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So Trump has looked for other legal authority to justify tariffs.<\/p>\n

To punish Canada, he reached back to the Great Depression, invoking Section 338 of the Tariff Act of 1930 to threaten 50% tariffs on products that account for about 5% of Canadian exports to the United States.<\/p>\n

Nearly a century ago, with the U.S. and world economies in collapse, Congress passed the 1930 tariff law, imposing taxes on imports from around the world. Known as the Smoot-Hawley tariffs after their congressional sponsors, they are notorious among economists and historians for limiting world commerce and making the Great Depression worse.<\/p>\n

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Section 338, which has never been used before to impose tariffs, authorizes the president to slap import taxes of up to 50% on imports from countries that have discriminated against U.S. businesses. No investigation is required to justify the levies. Nor is there any limit on how long they can stay in place.<\/p>\n

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The rift comes as the United States, Mexico and Canada are trying to renew a trade agreement that Trump negotiated in his first term and once praised as a triumph. The United States has begun formal talks with Mexico over revamping the US-Mexico-Canada Agreement, known as USMCA. But talks with Canada have not begun and escalating trade conflict casts doubt on whether they will.<\/p>\n

\u201cCanada told the Americans in advance that if these tariffs landed, it would stop negotiating and retaliate,\u201d said Barry Appleton, senior fellow at the Center for International Law at New York Law School. \u201dThe American trade representative said publicly he would not tolerate retaliation. Both sides have now committed themselves in public, which is how escalation stops being a choice.\u201d<\/p>\n

Read more I helped turn a California bank into one of America\u2019s fastest-growing. Now I\u2019m building a company to serve the people that banking has failed<\/a><\/p>\n

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The import taxes will hit about 5% of what\u00a0Canada ships to the United States\u00a0every year, including products ranging from hockey sticks to tongue depressors.<\/p>\n","protected":false},"author":1,"featured_media":5757,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tariffs"],"yoast_head":"\nU.S. hits Canada with 50% tariffs, invoking a notorious Great Depression law that has never been used before to impose import taxes - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=5758\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. hits Canada with 50% tariffs, invoking a notorious Great Depression law that has never been used before to impose import taxes - 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