The Globe and Mail reports in its Thursday edition that the United States is proposing a new 10-per-cent tariff on goods from Canada and other trading partners to rebuild the tariff wall invalidated by the U.S. Supreme Court. Mark Rendell and Adrian Morrow write that Canadian products compliant with the United States-Mexico-Canada Agreement, however, would be exempt. The U.S. Trade Representative announced tariffs between 10 per cent and 12.5 per cent on 60 countries.
The office said the tariffs are being imposed, using Section 301 of the 1974 Trade Act, because of countries' failure to curb imports of products made with forced labour -- a claim Canada and other trade partners have disputed.
The proposed levies are the administration's latest attempt to fulfill President Donald Trump's goal of a global tariff regime hitting virtually all of America's trading partners. Under the new tariff proposal, USTR has said there will be a 10-per-cent tariff on Canada and 15 other countries for allegedly not doing enough to enforce bans on forced labour in their supply chains. A higher 12.5-per-cent tariff will apply to 44 other countries.
Canada and Mexico, however, seem to have again been offered a significant carve-out.
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