00:00A 50% U.S. tariff just hit Canadian goods,
00:03starting with hockey sticks.
00:05To do it, Trump used a 1930 law
00:07that no president has ever touched.
00:08Now he's calling Canada a wannabe state,
00:11and he's coming for their cars next.
00:13Here's what's happening.
00:14Trade talks between the U.S. and Canada
00:16collapsed on August 21st,
00:18with both sides blaming the other for walking away.
00:20The next day CNBC confirmed the U.S. hit $20 billion
00:23in Canadian goods, hockey sticks included,
00:26with a 50% tariff.
00:28The law is called Section 338,
00:30and it lets a president tax a country for unfair trade,
00:33and two things make it pretty unusual.
00:35It requires no investigation,
00:37and it has no expiration date.
00:39The White House's fact sheet says that this is payback
00:41for Canadian discrimination against American exports
00:44of cars, alcohol, and dairy.
00:46These new tariffs reach close to 500 product categories,
00:49well beyond those three,
00:50with only four categories exempt.
00:52Energy, potash, critical minerals, and fish.
00:55But the people who buy the imports pay the tariffs,
00:58not the countries.
00:59So the prices on goods go up.
01:01When Newsweek asked economists which prices go up first,
01:04they said whiskey, beer, hockey gear,
01:07furniture, cement, and clothing.
01:09Carney's office says it comes down to sovereignty.
01:12Canada won't trade away authority, power,
01:14or its key industries.
01:16He called the tariffs a miscalculation,
01:18and said Canada would match them dollar for dollar
01:20starting September 8th.
01:21The AP reports he also pointed out that since Canada
01:24is the largest buyer of American-made cars,
01:26many automakers in Ohio, Kentucky, and Alabama
01:29have jobs that depend on that demand.
01:31Ontario's premier went further,
01:33threatening to cut off electricity and critical minerals
01:35to the US entirely.
01:37Either way, nobody's backing down.
01:39So if your favorite beer or your car costs more,
01:42are you switching brands or are you paying anyway?
01:44Let us know in the comments.
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