U.S. President Donald Trump has announced plans to impose a 50% additional tariff on most products from neighboring Canada.

Just three days after threatening to impose a "wildfire tariff," he has invoked a legal provision from nearly a century ago to levy new duties on Canada.

Analysts interpret this move as an attempt to gain leverage in the follow-up negotiations for the United States-Mexico-Canada Agreement (USMCA), which was not renewed due to U.S. opposition.

According to the White House, President Trump signed three proclamations on July 20 (local time) to impose a 50% additional tariff on certain Canadian products, citing Canada's discriminatory treatment of U.S. goods.

President Trump stated that the legal basis for the action is Section 338 of the Tariff Act of 1930.

Bloomberg reported that this provision allows the president to impose tariffs of up to 50% on countries that engage in discriminatory treatment in trade with the U.S., noting that this is the first time the clause has been applied as a basis for such tariffs.

The new tariffs will take effect in 30 days.

The White House explained that items such as wine, hockey sticks, and cement are subject to the new duties.

The tariffs will apply to goods that previously enjoyed duty-free benefits under the USMCA, while products already subject to tariffs under Section 232 of the Trade Expansion Act of 1962—such as energy, seafood, and critical minerals—are exempt.

The Associated Press reported that the 50% additional tariff will apply to the vast majority of Canadian products.

In a separate press release, the Office of the United States Trade Representative (USTR) stated that the measures would affect $20 billion (29.5 trillion won) worth of Canadian goods.

The Trump administration officially maintains that this measure is a response to Canada's discriminatory treatment of U.S. products.

The administration claims that due to Canadian authorities' imposition of tariffs and measures to halt the sale of U.S. products, Canadian imports of U.S. automobiles fell by 22% in the one-year period starting in April of last year compared to the same period the previous year, and Canadian imports of U.S. alcohol dropped by 81% in the one-year period starting in March of last year compared to the same period the previous year.

A U.S. administration official argued that Canada must be held accountable, noting that it is one of the few countries, aside from China, to have retaliated against President Trump's tariff impositions.

Some interpret this move as a strategy to increase bargaining power in the follow-up USMCA negotiations.

Earlier this month, the Trump administration refused to renew the current USMCA and announced a policy to review the agreement annually for up to 10 years.

This has led to speculation that the administration preemptively imposed additional tariffs to secure the most favorable outcome for the U.S. in the ensuing negotiations.

The fact that the tariffs were not implemented immediately, but rather with a 30-day grace period, supports this interpretation.

President Trump has previously threatened trading partners with high tariffs to exert pressure, only to withdraw them later.

(Photo: AP, Yonhap News)