Habor wanted to rich to watching the plane bags. We’re back to be in a troof channel, baby, because just this week we got the update that the U. S. Will be imposing a 50% tariff on certain Canadian imports set to go into affect August nineteenth under from the 38 of the Tariff Act of the 1930, the first ever recorded use of this section. Here with us president, Hey Richard, from the future here, with more breaking news, things just got worse with the U. S. Announcing yesterday that the country would be imposing an additional ten to 12.5% tariff under section three or one of the Trade Act of 1924 on 60 different countries, including Canada. Countries are together, basically represent all of America’s imports. With the U. S. Percy. Everyone are failing to enforce bans on imports of goods manufactured with forced labor in the percent ent of does come with a fcm a trade deal exemption for Canada. So arguably less impactful for this country compared to the 50% tariff news. But in terms of the U. S. As a whole, much more far reaching of an update. So I’ll come in at the end of the video to give more updates around that. But for now, I’ll let PaaS booetes link ignorant Richard so explain the the fitzclarence rr scene with Canada. This news follows just a stream of concerning updates regarding in trade between the two countries. In July, on Canada Day of all days, the U. S. Announced that it would not be renewing the U. S. M, C, A tradition also known as cosmic here in Canada, which does not mean it’s cancelled. And so far the U. S. Is stop short pulling out of the agreement, which any nation can do with six months notice. But it does now have to be reviewed annually up until 2036, which is when the agreement expires. And of course, there’s been the fires. A swap of Canada’s forests are currently ablaze with they’re been nearly 1000 wild fires across the country, a good chunk of which are concentrated in Ontario, which has severely impacted the air quality in Canadian dua. Cities with Toronto, New York and Washington, D, C. Been labeled as having the worst air quality in the world on Saturday, all of which to, of course, fixed the issue, prompted the us. President to threaten in tariff. S thanks, Paul. Just super helpful. But to be clear, Canada’s wildfires are not the stated reason for this new set of tariff. S instead, the section 33 tariffs have been imposed for what the U deem to be discriminatory trade practices from Canada in three specific areas, automotives, alcoholic beverages and cheese. Yes, we’re seeing the term dairy being thrown around a lot here, but this is specifically about the chatter of which there’s a very important reason for that, that will touch on later. Now the tariffs were announced to via three proclamations on Monday. Jal ethe eh actually followed a number of other announcements and programming from the same and the one President Trump bbs, this week, July nineteenth, in 2020 fifth in in America fs, another where the president issued an executive order pushing defensive chains to turn up sourcing of critical materials from the foreign countries, and a third announcement of the planned to cut aluminum import tarries in half for companies working to onshore production. But there are also being news announced after this update that Trump ans to impose a 100% tariff on generic for Maceda cs in 2028 alley that would actually increase thereafter. But of course, the announcement that most immediately impactful is this 20% section 33 tariff on Canadian goods, which will impact it regardless of whether they fall under asma or not, which is important because under this trade agreement, roughly 90% of Canadian exports have been able to enter the U. S. Duty free, thanks to the trade deal. Now, the section 33 tariffs has mentioned only going to affect August sixth are one of the few terrorises that don’t require a formal investigation or review, and they can only be imposed up to maximum of 50%. So we’re seen the tariff max out out here in cases where foreign country discriminates against U. S. Trade, thereby putting it at a disadvantage to other trade partners. So is not final al Canadian aliens or retaliatory defies instead the U. S. A, in trade barriers that it faces that other countries don’t necessarily win exporting to Canada. So what are these side of trade barriers? Well, the most obvious is the alcoholic beverages. In March of 20, 25 of the Canadian provinces in territories halted the purchase, distribution and retailing of U. S. Alcoholic beverages in retaliation for the terrorists pose on Canada. You see the distribution in sale of alcohol in Canada is pretty central ally, controlled by provincial crown corporations like the alcohol in Ontario, which act as a middle man for most alcohol purchases in in fact, they are the sole, primary whole sellers and a top retail outlet for alcohol and the bee on one of the only retail locations for individuals in the alcohol in a few provinces, although we’ve recently had some easy there with provinces, just recently announced plans to allow consumers to direct order and producers and provinces. And when the trade war first started, these institutions, which exert a lot of control over alcohol sales, started pulling us s. From the shelves, effectively implementing a ban on U. S. Alcohol sales, with only Alberta in Saskatoon lifting their bans in June 2025. And according to the White hose, this has had a devastating impact on U. S. Alcohol exports to the country, which have dropped 81% from 20 24 to 2020 five. And the the us. Was specifically targeted here. And other countries have actually increased their exports of alcohol to Canada with being highlighted as one of the discriminatory trade barriers. The second trade discrimination is around automotives, where in April of 2025, Canada began charging a 25% sir acts against passenger vehicles and certain trucks originating in the U. S. That do not qualify for preferential duty free treatment under the U. S. M. C. Agreement with even complied vehicles being charged on the value of goods that do not originate in Canada or Mexico used in the production of the vehicle. So even if the car sold by the us falls under Isma or the us mca requirements, any percentage of the vehicle that comes from the United States will still be charged that 25% tax. Now Canada has granted some reacted to certain of producing and largely based whether they’re committed to continuing produced in Canada or not, which is mentioned in the programme. And because of a special the targets U. S. Producers and other countries actually saw automotive exports to Canada increase during this period. The us. Labeled the practice discriminatory to the order, highlighting that the third tax has resulted in the 22% decline in imports of us motor vehicles to Canada because the there is large, which has long been a contested issue between the two countries because of Canada supply management of the industry. Basically, the country limits how much producers are able to make in certain dairy products, and that extends to how many imports are allowed into the country, with Canada implementing terrify quotas, whereby only the certain quantity is allowed into the country, after which prohibitive troops are charged on imports. Well, America agreed to some terrify quotas that allowed ative export dairy products to Canada. Duty free under those amounts are still still been a contentious issue for the two countries, but those broader grievances aren’t technically what’s at issue here. And said the U. S. Is specifically citing cheese as an area of discriminatory trade barriers. You see in the U. S. Under the cosmetic a deal, only processors, distributors are eligible for allocations of terrify y quotas. Are retailers who sell cheese directly to issues aren’t themselves eligible, meaning U. S. Stores can really sell cheese into the country right under the EEEAAAEEEEE diregus aise manufacturer, distributors and retailers can all qualify for tea U. Allocations, which again the U. S. Is taking issue with given that it faces different conditions. So those are the reasons cited for the latest Ratti fs. Now in terms of how these trade barriers are impacting the us. The automotive sectors, by far the largest category here, representing about 25.9 billion U. S. Dollars, according to the White House, which alone represents 7.4% of total U. S. Goods exported to Canada in roughly 6% of total exports. When you include services, where’s both alcoholic beverages and cheese? See less than billion dollars worth of exports from the U. S. To Canada in terms of Americans response to these tode barriers. And the list of products is much more broad in the procurement announcing the tarot s, there are three separate NX documents that outline all the products being impacted here. And you can see it’s a fairly long list with some notable examples, including plywood and other wood products, fabric and the milk and cream and wine and alcohol, certain machinery, hockey helmets and sticks, furniture, toys, wigs to the bulbs and bones treated with acid, which great, there are no my weekend plans. Now there are a number of key product categories examined here. For one, any product already subject to section to 32 troops are not subject to the additional 50% levy. So addition to a few other categories that include templum steel, aluminum and copper and automotive and other parts are also exemptions for articles of civil aircraft, and the Whitehouse has explicitly exempted some other important categories, including energy, potash and certain other goods like fish and critical minerals. In all, in U. S. Trade, Representative James in greeter estimates that the terrace target 20 billion U. S. Dollars worth of Canadian goods, which you represent roughly 5% of Canada’s exports to the U. S. In 2025 and the severity of the tariff on each of Canada’s industries and varies by product. And given the su of things covered, we don’t have time to dive into the implications for each of these businesses. Over some big ones, like dairy, in most alcohol, the impact will likely be normal given that only a small fraction of domestic production is sold to the U. S. But for spirit specifically, these are pretty meaningful impact given that over half of sales for the stories come from some of terrible, the other products like plywood, and a number of other words of likewise rely on the U. S. A good chunk, and in some cases, the majority of their sales. Now these terrorists from the U. S. Are being framed as a reciprocal response to so called Canadian discrimination against U. S. Trade. Is worth noting a few points on the three different areas being targeted here, at least in terms of justification as first regarding automates the the 25% Canadian third tax was itself a reciprocal x intended to mirror America’s own 25% sections to three, two terrify. Auto parts and automotives impose in in may 20, 20, 25, which itself charges 25% on non us source components for USMC. A complained vehicles with the cleaning tax effective ly designed to try to offset this impact all the country probably why the response to the Canadian taxes actually don’t involve automotives themselves because America already charging a similar tariff on Canadian auto parts. Secondly, regarding cheese, this is not the first time a has raised issue with Canada’s TR, Q system, with the country arguing that Canada has unfairly restricted its access to these tear cues, thereby preventing it from fulfilling the full amount of quantity is allowed to sell to the country duty free. However, there is already a formal review process as part of the usa agreement, the rectifying these issues, and they’re already been to formal reviews on this topic, the first of which ruled in America’s favor and resulted in some changes and the second of which largely cited with Canada and the focus on cheese. And because the U. S. Is arguing its disadvantage due to Canada having varying trade conditions with different trade partners. But for one, the U. S. Itself has very different trade conditions for different trade partners. Prior to translate ation day terror s been deemed illegal, U. S had actually struck a deal with the U. K. To allow for tariff free eros es products terror y quotas of steel, aluminum and favorite rates for automotives. That would have been better than what Canada was able to export to the U. S. For now. Progress on agreement has stalled since the U. S. Now is exploring free trade regimes. But you get the point is already been this president set for varying trade conditions, the U. S. Isn’t really want to cry about favorite sm here when that’s kind of in the name of the game. The past twelve so months. Secondly, while the European Union might have better access in the cheese category, which is sizable at about 41% of Canada’s total dairy imports, the U. S. Is still itself the single largest importer of cheese to Canada, representing over a third of cheese imports into the country. And the reason the U. S. Is only talking about cheese here is because that’s the only category that given access to under the seat of agreement, the U. S. Has much broader access to Canada’s dairy market as a whole, making up roughly three quarters of butter imports, 81% of way product imports and representing nearly all of Canada’s milk imports. Now alcohol is probably the area. The White House has the strongest argument for trade discrimination under section, through, through agreement, and it’s going to prove a difficult issue to resolve. As mentioned, the actions were largely taken at the provincial level and provincial premieres. Haven’t all of that receptive to the idea of bringing back U. S. Alcohol? The band also has a lot of public support, with one ens poll finding that 73% of respondents believe keeping U. S. Liquor off store shelves was the best path Ford for provincial governments that showing general support for boycott U. S. Goods travel. But now in response to this terrible announcement from the U. S. Prime Minister, Marco issued his own statement or by highlighted that many of Canada’s moves were merely matching the measures from the U. S. Who violated the Isma agreement with its own troops in 2020 and the the the minister of highlighting separately that the government would consider all options for response if the tarot going to effect in August. But as of the time of recording, we haven’t seen specific of of Canada a retaliate with, if anything, no, given the history of poco trade. But there are some people believe the reform actually and up going to effect, but they are simply designed as an negotiating tactic to remove some of Canada’s leverage in trade talks. And we could see Canada make some concessions to try and undo this announcement. Mm, for example, recently was able to get a revenue sharing agreement with Canada for its new Gordy hell international bridge after Trump upset about the project. For some reason, however, even countries that have made concessions to the United States haven’t seen much reciprocation today, so we may not see Canada really responded with any sort of concession. And the, the, the further progress on trade talks, which might take a while, or their active talks between Mexico and the U. S. And Canada and the U. S. Are in touch. So far, we haven’t seen any material progress, right? So that’s the section three, 38 troops. As for the section three or one troops, these troops followed an investigation by the office of the U. S. Trade Representative that concluded in June or by the U. S, argued that these 60 countries, Canada included, failed quote to impose and effectively enforce a prohibition on the importation of goods produced with force labor. As for the evidence behind this specifically for Canada, anyway, U. S, D, R argues that the Canada border or services agency lacks transparency and has a much lower interception rate for shipments compared to the U. S, with only two shipments being prohibited. Entry into Canada to the Pitt is compared to the 6000 in the the states, which America argues allows Canada to be a dumping ground for reexported. Now Canada’s case, the country is one of the few that have committed to further strengthening its ban on this type of import, which is why the country is only subject to the 10% tariff where, as other countries have been subjected to the twelve, 5% tariff where there’s no commitment in place. But none’s America argues that Canada’s actions on this commitment have fallen short, with the 10% tariff been in addition to the 50% tariff under section 3:38 now compared to the 50% tariffs are applied to a specific list of items to the broad terror with a very long list of exemptions. You can see here the concubines in everything out, a lot of food items being executed at the high level that can include exemptions for sex, 2:32 tariffs or the sector specific tariff s information materials, donations in accompanying Bagge oil, gas, fertilizer and other raw materials the U. S can sufficiently produced domestically and again for Canada and Mexico products that fall under the U. S. M, C, A or cuz metro deal. There is also commitment to add trophy quotas for certain textiles and a pair for a certain list of countries and all these tariffs added for for certain countries. For others, the terrace charged net of most favorite nation tariff. S now, as big of an update as this is, it was largely expected to Trump ari expressed in interest in reimplement ting these type of baseline terrorists. S, once the initial Liberation Day troops were struck down earlier this year. And because of that, je investigation report from the U. S, T, R. In fact, this is what past Richard had to say on all this before this update came out. It’s likely the first of many tariff announcements to come as U. S. Now again implements a new tf regime under different sections of U. S. Law. In June, for example, the U. S. Concluded its section three o one investigation that identified Canada a alongside 15 other nations for failing to effectively enforce bans on importing goods made with force labor. But the U. S. Trade Representative proposing an additional percent tariff on Canadian goods as result of their labs, also, with Trump having dubbed this past week, made in America week and importing that the U. S. And the dial to effectively forced its forced labor bands. It does just seem like an excuse for the us. To get that is the the broad based heros? Yes, I think we can all agree, force labor bad, don’t like that. But it is questionable whether that’s the real motivation for these tariffs. Mps simply stopped caring about the less than 1% of os that comes from Canada ever since the Supreme Court trucked down those related tariff. S Oliver suggests that the, the, the countries take action on force labor. It’s not going to result in the us. Ruling back these new troops unless a trade deal is announced meaningful as labor bad, unless you got to deal with the U. S. Anyway, we’re trying to get more information about this additional terror, but I want you to quickly touch on the high level information given how and packed for this new announcement will be. But with that said, I let PaaS Richard carriers out and let me the things currently stand and will have to wait and see how trade negotiations progress and whether your thoughts end up actually coming into effect or not. Thanks for watching. I’ll be found this video hopeful. If you did, please do make sure to like subscribe the good stuff. I just have the channel tremendously and let me know your thoughts on this new announcement of the U. S. Regarding Canadian exports. And again, thanks for joining and as always, busy for there.