Canada welcomes U.S. Supreme Court ruling that invalidates some Trump tariffs

Canada welcomed a U.S. Supreme Court decision that struck down the legal basis for some tariffs imposed under the International Emergency Economic Powers Act, while levies on steel, aluminum and autos under Section 232 were not affected.

The Canadian government welcomed a U.S. Supreme Court ruling that removed the legal justification for certain tariffs the U.S. imposed using the International Emergency Economic Powers Act. The decision is being discussed because it affects a set of duties imposed since early 2025, including so-called "fentanyl tariffs" and reciprocal levies on several trading partners. Canada’s trade minister said the ruling supports Ottawa’s arguments against those IEEPA-based tariffs. At the same time, tariffs placed under Section 232 on steel, aluminum and autos were not changed by the court decision. Key points: - The Supreme Court struck down the use of the International Emergency Economic Powers Act (IEEPA) as the legal basis for a group of recent U.S. tariffs. - Affected measures include the tariffs described in media coverage as "fentanyl tariffs" and certain reciprocal or "Liberation Day" levies. - Tariffs imposed under Section 232 on steel, aluminum and automotive products remain in place and were not part of the ruling. - Dominic LeBlanc, the federal minister responsible for North American trade, said the decision reinforces Canada’s position that the IEEPA tariffs were unjustified. - Trade experts reported that the U.S. administration may seek other legal avenues to maintain some of the affected tariffs. - Canada, the United States and Mexico are scheduled to complete a review of the USMCA this year, with each party to signal by July 1 whether it intends to renew the agreement. Summary: The ruling removes the IEEPA legal grounds for a set of recent U.S. tariffs, a development Ottawa welcomed as supporting its objections. The decision leaves Section 232 levies intact, and observers reported that the U.S. administration may pursue other legal tools; the broader USMCA review and renewal process is underway and remains scheduled to proceed.