Restoration Hardware drops 8% after Trump announces “major tariff investigation” targeting imported furniture amid broader trade policy scrutiny

Restoration Hardware drops 8% after Trump announces “major tariff investigation” targeting imported furniture amid broader trade policy scrutiny

Canada has announced a significant shift in its trade policy, removing a 25% tariff on approximately half of the U.S. goods it has targeted since March. This move comes as a gesture of goodwill aimed at resetting the trading relationship between the two countries. The decision, made by Prime Minister Mark Carney, affects about $21 billion of U.S. exports to Canada, including items such as orange juice, peanut butter, wine, spirits, beer, appliances, and motorcycles. The tariffs on these goods will be lifted as of September 1, 2025 [1].

However, the tariffs on U.S. steel, aluminum, and automobiles will remain in place. This decision aligns with Canada's commitment to treating the bulk of its trade with the U.S. equally, mirroring the exemptions provided by the U.S. under the U.S.-Mexico-Canada Free Trade Agreement (USMCA). Carney emphasized that this move will help bilateral trade talks, as President Trump assured him that dropping the bulk of the tariffs would be beneficial [1].

Canada's decision follows a conversation between Carney and Trump, which took place the day before the announcement. Carney highlighted that Canada currently has the best trade deal with the U.S., with an average tariff on Canadian imports sitting at about 5.6%. He also noted that Canada will focus on supporting industries facing sectoral tariffs and prepare for the formal review of USMCA, scheduled to begin next year [1].

The move has drawn praise from former senior Canadian officials. Brian Clow, a senior adviser on U.S.-Canada relations to former Prime Minister Justin Trudeau, stated that retaliating alone wasn't effective and that Canada needed to stand together with allies. Mark Warner, a Canadian and U.S. trade lawyer, noted that Canada's exemption under USMCA is at risk if retaliatory duties are kept in place, and that Mexico, the other USMCA partner, has not imposed retaliatory tariffs [1].

References:
[1] https://www.tradingview.com/news/DJN_DN20250822006089:0-canada-pm-carney-plans-to-drop-25-tariff-on-some-u-s-imports-update-2/