US expands trade measures against Canada

According to statements released by the White House, the Washington administration has expanded its trade measures against Canada under section 338 of the 1930 Tariff Act.

In this context, US President Donald Trump signed five new declarations targeting Canada's motor vehicle, dairy and alcoholic beverage sectors.

The reasons for the declarations were cited as Canada's continued regulation of automotive tariffs, its continued "tariff quota discrimination" on dairy products, especially cheese varieties, and its expansion of provincial restrictions on American alcoholic beverages.

With the three declarations signed by Trump, the import of certain Canadian motorcycles, dairy products and alcoholic beverages of Canadian origin, which were previously subject to an additional 50 percent customs duty, was banned as of September 29.

In the declarations, it was stated that products imported before this date but not yet put into free circulation or withdrawn from the warehouse for consumption will continue to be subject to a 50 percent customs duty rate.

It was stated that if the import ban is invalidated by judicial or administrative means, an additional 50 percent customs duty will automatically be applied to the relevant products.

With two other declarations signed by Trump, the scope of the 50 percent additional customs duties, which were put into effect in retaliation for Canada's motor vehicle and alcoholic beverage policies, was changed to be effective as of September 15.

In the declarations, it was noted that some Canadian products were included in the scope of 50 percent additional tax, based on the recommendations of senior economic officials and considering the public interest, while some products that were previously on the list were excluded.

TRADE NEGOTIATIONS BETWEEN THE USA AND CANADA ARE BLOCKED

In July, the US administration announced that Canada would impose a 50 percent customs duty on some goods imported from this country, claiming that it had "discriminatory" practices against American products.

In the statement made by the White House, it was noted that Trump signed three separate presidential proclamations stipulating the imposition of additional customs duties on certain products of Canadian origin in accordance with Section 338 of the Tariff Act of 1930.

It was stated in the statement that each declaration brought an additional tax of 50 percent on different product groups imported from Canada, and that this scope included various products from wine to hockey sticks and cement.

In the statement, it was stated that the tariff in question would come into force on August 19.

These additional taxes were suspended for 3 days in line with the negotiation commitments on August 18, but came into force on August 22 after the negative results of the negotiations.

In response to the US's 50 percent tariffs, the Canadian administration announced that customs duties of 15, 25 or 50 percent would be applied to certain US products, and these tariffs began to be implemented on September 8.