U.S. Supreme Court is set to rule on Trump's 'Liberation Day' tariffs

The U.S. Supreme Court is expected to issue a decision soon on the legality of tariffs imposed under the International Emergency Economic Powers Act, and Canadian business and trade experts say either outcome could affect this year's CUSMA review and add uncertainty for some exporters.

The U.S. Supreme Court has added Friday as a non-argument day and is widely expected to issue a ruling soon on the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Appeals were heard late last year after lower courts had declared that use of IEEPA to levy tariffs was illegal. Canadian business leaders and trade experts are watching closely because they say the ruling could affect broader trade relations and ongoing review of the Canada-U.S.-Mexico Agreement (CUSMA). Some industries and exporters already face uncertainty from sector-specific tariffs applied under other legal authorities. Key points: - The court may rule soon on the legality of a broad set of tariffs applied under IEEPA, a matter that was appealed after lower-court decisions. - Many Canadian exports are reported to be CUSMA-compliant and were largely spared from the IEEPA tariffs, according to the Canadian Chamber of Commerce. - Observers warn that regardless of the ruling, the U.S. administration could pursue other trade measures, including sector-specific tariffs issued under national security authorities. - A TD economist noted the decision may have implications for this year’s CUSMA review and negotiations. - Industry leaders and trade lawyers urged measured responses from Canadian officials and highlighted continued uncertainty for exporters who adjusted to the IEEPA measures. Summary: The ruling is expected imminently and could influence how trade discussions and reviews proceed between Canada and the United States. Impact on specific sectors and the broader cadence of trade policy will depend on the court’s decision and any subsequent actions by U.S. authorities. Undetermined at this time.