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US President Donald Trump came down on the field again with the right hand of the tariff. This time, the neighboring country Canada is in the face of his anger. A 50 percent tariff has been announced on most products coming from this country. The American complaint is that the Canadian administration is discriminating against US products. Because of which this step. It is feared that the diplomatic conflict between the two countries is going to increase in this incident.

It is known that this action has been taken against Canada using Section 338 of the US Trade Act of 1930. Trump ordered to increase the tariffs in three sectors. However, there is another reason behind this move. A top official of the US administration explained the reason, saying that after China, Canada is the only country that dared to retaliate against Trump’s tariffs. Which was not taken well by the US President. Canada should have held America accountable. Canada is getting the result of not doing that.

Canada is the only country after China to have dared to retaliate against Trump’s tariffs. Which was not taken well by the US President.

However, most of Canada’s imported products are subject to a 50 percent tariff, but some products are exempted. Such as fuel products, potash, fish and rare minerals. Besides, most of the burden of duty has fallen on the product. Prior to this, the US-Canada-Mexico tariff-free trade agreement came into effect in 2020. However, that contract expired recently. After that, Trump became active. The move is expected to have a major impact on Canada’s economy.

It should be noted that earlier, Trump imposed similar tariffs on several countries by applying Section 338 of the Trade Act. Democrats proposed repealing this law last year due to Trump’s aggressive policies. Senators warned Trump could use the law to impose retaliatory tariffs on many countries. That will destabilize the American economy.