President Trump has opened a new front in the U.S.-Canada trade war. By invoking Section 338 of the Tariff Act of 1930 for the first time in its history, his administration has imposed a 50 percent tariff on roughly $20bn of Canadian imports, arguing that Canada discriminates against American commerce. Hockey sticks, furniture, apparel and alcoholic beverages are all in the crosshairs.
But not softwood lumber. Like other goods already subject to Section 232 tariffs, softwood got a pass. That exemption is more revealing than the tariffs themselves — and it points toward a deal that has eluded both countries for four decades.
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