The Trump administration is weighing a ban on some Canadian imports in the event of further retaliatory tariffs against American goods, a US official told Semafor.
Canada announced earlier this week it would match the Trump administration’s latest levies, fueling fears of an escalating trade war between the two longtime allies after negotiations imploded last week.
If Canada goes further, the US official said, its actions would provide the legal basis for the US to impose another round of tariffs on Canada under Section 338.
The same legal authority could be used to prohibit imports from Canada, the US official added, and the Trump administration is analyzing those imports to determine which prohibitions would not disrupt US supply chains.
President Donald Trump has already pledged to hike tariffs on Canadian steel as well as trucks, cars, and car parts to 50%, beginning Jan. 1.