Washington and Ottawa are in intensive negotiations to stop President Donald Trump’s proposed 50% tariffs on $20 billion worth of Canadian products. The tariffs, slated to take effect at 12:01 a.m. Wednesday, would affect items ranging from hockey sticks to medical supplies.

Background on the dispute

Trade tensions between the United States and Canada have persisted for decades, often centered on softwood lumber, dairy access, and other sector‑specific issues. Trump’s recent approach marks a sharp departure from the traditionally cooperative relationship, with the president framing the tariffs as a means to bring manufacturing back to the United States and to pressure Canada on military sales, missile‑defense cooperation, and critical mineral access.

Canadian response

Canadian Prime Minister Mark Carney told reporters that negotiations are “very intense and delicate,” emphasizing that public discussion of the talks is premature. The Canadian government is also seeking relief from existing U.S. tariffs on steel, aluminum and softwood lumber, which it says are unfairly subsidized.

U.S. perspective

U.S. Trade Representative Jamieson Greer warned that retaliation would not be tolerated, while former trade official Ryan Majerus noted a strong push on both sides to find an “off‑ramp.” The administration hopes to avoid imposing the tariffs ahead of the November midterm elections, where higher consumer prices could become a political liability.

Legal and historical context

Trump invoked Section 338 of the Tariff Act of 1930—an authority never before used—to justify the 50% levy. Unlike the more common Section 301 tool, Section 338 does not require an investigation and has no set time limit. The law dates back to the Smoot‑Hawley tariffs of the Great Depression, which economists widely view as having deepened the economic downturn.

Potential impact

If enacted, the tariffs would raise costs for U.S. importers, who could pass higher prices onto consumers. Canadian exporters, who sent nearly 72% of their goods to the United States last year, would face a significant market disruption. Both governments recognize the broader economic stakes, especially as the United States renegotiates the US‑Mexico‑Canada Agreement.

Looking ahead

Negotiations continue as the deadline approaches. Canadian Trade Minister Dominic LeBlanc and Greer met on Monday, with LeBlanc indicating that “the work is continuing.” Analysts warn that any failure to reach a compromise could trigger further retaliation, complicating the broader North American trade relationship.

Original reporting: Alexandria, VA News – WTOP News — read the source article.