U.S. Supreme Court strikes down some Trump tariffs

The U.S. Supreme Court ruled in Learning Resources v. Trump that President Trump exceeded his authority when using the International Emergency Economic Powers Act to impose broad tariffs, and the decision does not affect sector-specific tariffs issued under section 232 of the Trade Expansion Act.

The U.S. Supreme Court on Friday ruled in Learning Resources v. Trump that President Donald Trump exceeded his authority when using the 1977 International Emergency Economic Powers Act to impose broad tariffs on multiple countries, including Canada. Lower courts had previously found the IEEPA-based tariffs unlawful and the high court heard appeals late last year. The decision removes the IEEPA basis for those tariffs. The ruling does not change tariffs issued under section 232 of the Trade Expansion Act, which remain in place for certain sectors. Key points: - The Supreme Court ruled that the president overstepped his authority when using the International Emergency Economic Powers Act (IEEPA) to levy broad tariffs. - The decision eliminates the IEEPA legal basis for those tariffs that had applied to multiple countries, including Canada. - Sector-specific tariffs issued under section 232 of the Trade Expansion Act are unaffected and remain in place for areas such as automotive, steel, aluminum and softwood lumber. - Saskatchewan called the decision "good news" while saying it is still evaluating impacts; the province noted the ruling could mean an end to the 10 per cent tariff on potash but remained cautious. Summary: The ruling removes the IEEPA basis for the wide-ranging tariffs while leaving section 232 tariffs intact; provincial officials in Saskatchewan described the outcome as good news but are continuing to assess effects. Any further legal, administrative or policy responses by the U.S. government or other parties are undetermined at this time.