News Analysis
The U.S. Supreme Court’s ruling that one set of U.S. tariffs on Canada is illegal strengthens Canada’s position, but the economic impact is expected to be limited—particularly after U.S. President Donald Trump announced a new 10 percent across-the-board tariff.
Canada had mostly been spared from the controversial tariff struck down by the Supreme Court on Feb. 20, as goods covered by Canada’s free trade deal with the United States were exempted. Now it remains to be seen if and how the new 10 percent U.S. tariff will apply to Canada.
Trump said during a press conference on Feb. 20 that he would use Section 122 under the Trade Act of 1974 to impose the new tariff. The statute allows the president to impose tariffs up to 15 percent to redress “large and serious” balance of payments issues, for a duration of up to 150 days….