The Canadian Press

Iowa Sen. Chuck Grassley says President Trump's threat of 50% tariffs on a range of Canadian goods, set to take effect Aug. 19, should be a "wake-up call" for Canada, framing the move as leverage in ongoing trade talks. Grassley, a longtime free-trade advocate, said tough negotiations are acceptable but warned they must not undermine CUSMA, the trilateral trade pact replacing NAFTA.

The administration says the tariffs respond to provincial bans on U.S. liquor, Canada's dairy supply management system, and vehicle quotas. Unlike other Trump tariffs, these would carry no CUSMA-compliance exemptions. U.S. Trade Representative Jamieson Greer called talks with Canada "constructive" but offered no indication a deal is near. Washington has also declined to extend CUSMA, triggering a decade-long review process, while formal renegotiation talks have begun with Mexico but not yet with Canada. Trump has called the agreement "irrelevant."