Trade lawyers say to take Trump’s latest tariff threat on Canada seriously, 'don't bet' on talks to avert them - Yahoo Finance

What the report says

Yahoo Finance reported that trade lawyers and analysts are warning companies to treat President Donald Trump’s latest tariff threat against Canada as a real risk, not merely a negotiating tactic. According to the report, Trump signed three presidential proclamations Monday objecting to Canadian policies involving automobiles, alcohol and dairy, and announced 50% tariffs on a range of Canadian goods. The duties are scheduled to begin after a 30-day window.

Trade specialists cited by Yahoo said the short timeline leaves businesses little room to adjust supply chains. Andrew Siciliano of KPMG advised companies to improve their positions immediately, while Ted Murphy of Sidley Austin told clients that negotiations might still prevent the duties but should not be relied upon given the poor state of U.S.-Canada trade relations. Joyce Adetutu of Vinson & Elkins said companies should prepare for near-term costs, though she suggested it may be premature to overhaul supply chains before further discussions.

The report said the White House is invoking Section 338 of the Tariff Act of 1930, a provision Yahoo described as never before used in this way, raising uncertainty over whether the action would survive legal challenges. A senior administration official said informal contacts with Canada have occurred, but no formal talks are scheduled. Canadian Prime Minister Mark Carney said Canada is ready to engage and wants to modernize the USMCA, while defending Ottawa’s retaliatory tariffs as a response to Trump’s earlier measures.

The dispute matters because the proposed tariffs could affect goods previously shielded under the USMCA and deepen a broader rupture between the two major trading partners.