But most Canadian tariffs will remain in place
The United States’ Supreme Court has ruled that President Trump violated federal law by imposing a sweeping international tariff regime last year, a bombshell ruling that represented a significant setback for one of the current administration's signature policies.
The court came to a 6-3 decision that the tariffs were unlawful. Chief Justice John Roberts said Trump "asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope," but that "in light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it."
The decision marks a dramatic twist in the president's global trade war, but it does not impact tariffs on Canadian steel, aluminum, lumber and auto vehicles. That's because it only applies to tariffs imposed using the International Emergency Economic Powers Act (IEEPA), which does not include those levies.
Trump has yet to comment on the announcement, but it looks unlikely to spell the end of his administration's tariff strategy. Experts believe he will turn to other legal measures to keep tariffs in place. Significantly, though, it could put Canada in a better position as review of the Canada-US-Mexico Agreement (CUSMA) looms in the summer, according to Canadian Imperial Bank of Commerce (CIBC) economist Avery Shenfeld, because it removes the prospect of 35% fentanyl tariffs if the US decides to walk away from that deal.
This is a breaking news story and will be updated.
